Directors at department store chain Allders have accepted a £158m takeover bid from retail veteran Terry Green.

The group, which has a flagship store in Oxford, has agreed a cash offer from Scarlett Retail, which is owned by property group Minerva, City firm Lehman Brothers and a management team comprising former Bhs chief executive Mr Green and ex-Asda finance director Phil Cox.

Scarlett is offering £131.9m -- or 160p per share -- and will also take on a net debt of £26.4m.

Allders spokesman Rachel Hirst said all jobs would be safe under the deal, which is subject to shareholder approval.

Chairman Brian Fidler said the group was making good progress after recording falling sales.

But he conceded that weak stock market conditions and the possibility of a downturn in consumer demand were still threats.

"Despite our confidence that our strategy will deliver long-term value for shareholders and the interest being expressed in the company by other parties, these factors have led to an unanimous intention to recommend shareholders to accept the offer," he added.

Mr Green stepped down as chief executive of Bhs earlier this year, saying he wanted to focus on new challenges within the retail arena.

Minerva already owns 26.2 per cent of Croydon-based Allders, which runs 24 department stores and 20 stand-alone homeware shops in the UK.