Expanding discount clothing chain Peacock has stepped in to make a �50m bid for ladieswear chain bonmarche.

The Cardiff-based firm has begun talks with bonmarche in a bid to increase its stores from 345 to 595.

More than 40 new stores are set to open in 2002

Peacock will also be adding to its customer base, with bonmarche specialising in clothing for the over 45s.

Peacock has reported a 15% boost in turnover for the year to March 31 to �269.8m.

If the takeover talks are successful, the move for bonmarche will be funded through bank debt and Peacock shares.

Bonmarche is also thriving - the chain revealed profits were also up 15% in the year to the end of January.

Bonmarche is held by Isis Capital and founders Gurchait and Gurnaik Chima and the takeover talks were confirmed following press speculation.

Peacocks has been a rare ray of success on the high street, with pre-tax profits for 2001/2 up 28% to �16.4m.

Cardiff-based clothes retailer Peacocks is defying the high street doldrums to reveal a big increase in profits.

Peacocks runs 350 stores in England and Wales and employs 5,500 workers.

In December, the company announced it was creating 1,000 jobs over the following 12 months.

The planned expansion includes up to 40 new stores across the UK in 2002.

There was a downturn in trading in May, but Peackocks management insisted it was only temporary.

Bucking the trend

The low-cost clothing firm's boom goes against predictions of the current manufacturing recession spreading into the retail sector in the coming months.

The expansion programme has been designed as a long-term move by the company, which plans to increase the number of stores from nearly 350 to 700.

Peacocks said it was targeting key locations in towns and cities for its latest expansion, without "cannabilising" existing sales.