Scottish Retail entrepreneur Tom Hunter on Wednesday revealed his investment vehicle TBH Investments has held talks with House of Fraser over a fresh takeover bid for the leading department store group.

Hunter saw his first bid of almost £200 million rejected last week but said yesterday his firm will seek further talks with the retail group early in the New Year to avoid suggestions a possible bid could cause disruption to festive trading.

"This is a serious approach and I look forward to renewing talks with the management of House of Fraser in the New Year," he added.

The 41-year-old has already won the backing of Icelandic retail giant Baugur which holds an eight per cent stake in the group while TBH has a 4.7 per cent stake in the retailer.

Hunter, who made £260 million when he sold Sports Division to JJB Sports in 1998, wants to take the group, which is reported to have debts of around £120m, private.

Rejecting Hunter’s £197m bid last week. House of Fraser said it was "firmly of the view that this indicative offer does not reflect the value of the company's business, assets and its prospects".