A RETAIL company which started life as a market stall in Skipton is reported to be looking at major expansion.

Ponden Mill is looking to raise enough capital to open 35 new stores a year by selling a major stake in its business.

It is believed the Silsden-based company is hoping to raise £6 million in return for a 40 per cent equity stake. The move should increase the company's turnover to a point where it can then be floated on the stock market.

Ponden Mill started life in 1968 as a market stall in Skipton by current chairman Barry Brookfield, who no longer takes an active role in the company.

In the 1970s Mr Brookfield started selling duvets from an old mill and went on to open his first shop in York.

The last five years has seen rapid expansion and the company now boasts 100 stores nationwide and a turnover of £58 million. It recently moved from premises in Cross Hills to Silsden.

Managing director John Taylor has been instrumental in the company's growth and is allegedly looking to build the turnover to £100 million before considering a full stock market listing.

Mr Taylor came to Ponden Mill in 1996 from chemist chain Lloyds.

Mr Taylor is reported to have said: "We can only fund 20 stores a year out of our profits.

"We want to bring in the investors to increase that figure to 35. Then in two years we plan to float - unless market conditions change dramatically. We are looking to sell a 40 per cent stake in the company and we'll use the majority of that to expand."

Barclays Ventures and Natwest are potential backers and are talking with the company.

A final settlement is unlikely to be reached until next March when the company's annual figures are released.

Financial director Don Haymes told the press that a full listing was a possibility but nothing had been decided.

He said: "While flotation is something we would definitely consider, there are all sorts of things that could mean it's a non-starter, such as the market's appetite for another retailer or the size of the business.

"Small cap firms have been out of favour recently but you can't say there isn't someone out there who may be looking to back a small flotation."

He added that the company would "keep an open-mind" and may consider going public 'through the back door' in a reverse takeover or a merger.