Bradford textile company Drummond Group is set to become a private firm again in a £4.8 million deal.

The business, based in Lumb Lane, Manningham, looks likely to become wholly owned by its majority shareholders, Chargeurs UK Limited.

A subsidiary of the French company of the same name, Chargeurs owns 74.1 per cent of Drummond's ordinary shares and is expected to make an offer for the remaining portion within the next fortnight.

Founded in the 1840s, Drummond has struggled recently and reported a pre-tax loss of £4.4 million for the nine months to December 31, 2000.

A company spokesman said: "I think this is a positive move and it makes us feel a lot more confident, because trading is still tough and this is a nice sign that our owners are serious about us.

"Market conditions and the general state of the high street haven't helped us, but this ought to send out the right signals to our suppliers."

Recommended offer values Drummond's ordinary shares at 7p each, and its 5.6 per cent preference shares at 110p each - valuing the business at £4.8 million.

A team from the northern office of Brown Shipley Corporate Finance, led by northern director Philip Johnson, have acted as legal advisers on the deal. Mr Johnson said: "The UK textile industry is operating in a tough economic climate, caught between strong competitive pressure from overseas manufacturers and depressed UK retail sales.

"This transaction will enable Drummond shareholders to realise a cash return on their investment. Returning to private ownership will also free the firm from the regulatory costs and restraints of being a quoted company, enabling it to develop and grow as part of the Chargeurs Group."

A listed company since the 1950s, Drummond employs 243 people in Bradford.