DEPARTMENT store Whitakers is at the centre of takeover talks.

Its owners, Beale, could be acquired by Torquay chain store operator Hoopers if an offer follows the "preliminary discussions" which have already taken place.

Beale owns Whitakers, in Deansgate, Bolton, as well as a further 11 stores across Britain.

If the deal goes ahead, it would take the Beale group back into private hands, just 10 years after the company floated on the stock exchange. Department store operator Beale, based in Bournemouth, is talking to Lawdene, a private equity group that owns 24 per cent of the Beale chain. Lawdene is a subsidiary of Hoopers.

Beale operates 12 stores across the UK. Nine trade as Beales Bedford, Bournemouth, Ealing, Kendal, Poole, Tonbridge, Worthing, Walton-on-Thames and Winchester.

The remaining three trade under their own individual name: Broadbents & Boothroyds of Southport, Denners of Yeovil and Whitakers of Bolton.

Beale's new chief executive Allan Alkins was previously managing director of Hoopers from 1995 until joining the group.

Hoopers owns four stores in Torquay, Harrogate, Tunbridge Wells and Wilmslow.

Hoopers joint managing director Paul Tregaskes would not be drawn on whether the company is poised to make a bid.

Last month, Beale reported a 5.5 per cent decline in turnover, down from £69.1 million in 2003 to £63.5 million for the year to October 30.

Despite optimism over its Christmas trading forecast, Beales profit fell from £1.08 million in 2003 to just £260,000 last year.

The company blamed the effect of intense competition, price deflation and and more cautious consumer spending.

News of the discussions sent shares in Beale up 11p, closing at 81p, valuing the company at £16.6million.