Budget clothing chain Matalan will receive a GBP817m (US$1.53bn) takeover offer from its chairman this week, Sunday newspapers reported.

John Hargreaves, who also founded the company, is reported to be launching a 200 pence-per-share bid for the 47% of the firm his family doesn't currently own.

According to the press, Hargreaves will make the bid by noon Wednesday; the latest possible chance he has been given by a takeover panel.

It was also reported he has lined up backing from Barclays Capital.

Matalan posted a profit fall from GBP80.5m to GBP36.3m in its last full-year report.