Despite posting strong Christmas trading results yesterday, one of the potential bidders for discount fashion chain Matalan has pulled out of the auction process, according to reports. London-based private equity firm BC Partners is believed to have been deterred by the £1.5bn price tag. The firm was one of five private equity groups to submit a bid for the Skelmersdale-based retailer in November last year, with a second round of bids due in early February. Matalan increased like-for-like sales by 13.7 per cent in the five weeks to 2 January and by 10.4 per cent to £362m for the 13 weeks to 2 January.

The automotive division of glass giant Pilkington has seen its profits wiped out in the last financial year after experiencing a severe drop in demand for its products. Pilkington Automotive, based in Ormskirk and owned by Japanese parent company NSG, reported a pre-tax loss on ordinary activities of £52.4m for the 12 months to 31 March 2009, down from a profit of £42.4m a year earlier. Its turnover fell 18 per cent to £704.2m during the period. The company said the loss was due to “all customers significantly reducing new vehicle production and several implementing plant closures”. It added that the market continues to be highly competitive and that a major focus in the short-term will be to improve the efficiency of operations. The company closed its Automotive Value Added operation in St Helens during the year and saw redundancy and restructuring costs rise to €29.5m.

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Wirral Council has secured £1.4m for new, affordable rented homes in three areas of the borough. The cash was awarded by the Homes and Communities Agency (HCA) under the Local Authority New Build Programme. The council’s bid sought funding for new houses on council-owned land in Seacombe, Bebington and Prenton to be managed by Wirral Partnership Homes. Deborah McLaughlin, regional director of the HCA, said: “This new funding will give further stimulus to some of our key regeneration areas by providing vitally-needed new homes and by protecting many jobs in the region’s construction industry.”