Matalan disposal may be speeded up by positive festive results

Its strong performance came as another clothing retailer, the large-size specialist N Brown, also posted robust sales.

That follows on from decent clothing sales figures from more middle-market players Marks & Spencer and Next in recent days, suggesting the key festive retailing period has evaded worst expectations.

Same-floorspace sales at Matalan, taken private by founder John Hargreaves for 817 million in 2006, jumped 9.3 per cent in the 13 weeks to 2 January.

They were up an even stronger 13.7 per cent up in the shorter festive trading period, the five weeks to 2 January.

Singer analyst Matthew McEachran said: "These figures should assist the current sales process, given press speculation that the asking price was putting off potential buyers."

Private equity houses, including CVC, TPG and Advent International, all registered an interest in making a bid for Matalan last year, sources said, but baulked at a mooted asking price of 1.5 billion.

The group, whose shops are mainly on the outskirts of cities, saw total sales over the 13-week period lift 10.4 per cent to 362m.

"This performance is particularly strong, considering it builds on the strong like-for-like growth and therefore strong comparators achieved last year in the same period," Matalan said.

N Brown indicated that the transition of customers to internet shopping had continued as online sales increased 13 per cent in the 19 weeks to 9 January.

Online now accounts for nearly 40 per cent of total sales.

The Manchester-based company said like-for-like sales in the period – excluding its Simply Be venture in Germany and the recently acquired chain High & Mighty – were up 3.6 per cent.

Overall sales increased 4.9 per cent, up from 1 per cent in the first six weeks of the period.