Floor coverings retailer Carpetright said bid talks with its founder are at an 'advanced stage.'

Lord Harris was granted permission to explore the possibility of making a bid back in June. News of progress sent the shares up 63p or 6.2% to 1,078 pence.

'The consortium headed by Lord Harris and other members of the senior Carpetright management team is in the process of completing its due diligence exercise,' said the company.

'The discussions between the consortium and the independent committee of the board of Carpetright regarding the proposal are at an advanced stage and remain on the same terms as outlined in the announcement of 9 October 2007,' it added.

On 9 October, following four months of talks, the 658-store group opened its books to Harris, who is chairman and chief executive, after his consortium - which is understood to include HBOS - made a 1,250 pence per share proposal.