Former Bhs and Debenhams chief Terry Green has teamed up with property group Minerva and Lehman Brothers in a bid to buy troubled department store chain Allders, media reports claimed on Tuesday.

According to reports in the UK press, Green has been asked to invest in the bidding group and is the man seen as most likely to take charge of the 44-store group if a rumoured £125 million formal pre-Christmas bid is successful

Minerva already holds around 25 per cent of Allders and revealed two weeks ago it has agreed on the principal terms of a possible offer at a price of around 160 pence per share.

It added at the time that an offer would be made through a new company, which would be majority owned by Minerva, but financed mainly by an unnamed financial institution.

However, there is speculation Icelandic retailer Baugur could be considering a takeover approach for Allders after its bid for fashion giant Arcadia was rejected earlier this year.