The turnaround investors Apollo and OpCapita have reportedly been working on a takeover bid for the DIY retailer Homebase.

Homebase has apparently attracted the interest of the investment funds due to rumours that its parent company Home Retail Group is preparing to put Homebase up for sale.

OpCapita is the company that was behind the controversial takeover of Comet from Kesa Electricals for £2 in 2011.

The Home Retail Group chief executive John Walden did reveal during the company’s full-year results in April, that he would be looking into the group’s strategy and structure as Homebase had repeatedly failed to perform as well as sister company Argos, which fuelled further speculation that a spin-off of Homebase could be on the cards.

Other firms that specialise in turning around companies in distress are also thought to be watching the situation including Hilco and Endless, which acquired HMV and Kiddicare respectively.

Interest has been heightened by the belief that Home Retail Group will be paying a dowry to offload Homebase.