Jones Group has confirmed Wednesday's report in The Irish Times that it is negotiating to sell its oil companies and Appian Fasteners to a management consortium. This is headed by Mr Pat Nevin, chief executive, Jones Group, and Mr Aidan McKeever, managing director, Jones' oil companies. A brief statement from Jones said "heads of agreement have been signed with the consortium and it is expected that the transaction will proceed in the coming months, subject to shareholder approval and regulatory clearance". The statement said a special sub-committee of the board is conducting the negotiations on behalf of the group which is being advised by IBI Corporate Finance.

It also confirmed that it is in discussions for the disposal of its majority, 63 per cent, stake in Blugas, the LPG distributor. Blugas is understood to be struggling to maintain a market share in the face of strong competition from the two main operators in the Irish market, Flogas and Calor.

Jones' shareholders earlier this year received £18 million in a distribution of most of its cash hoard. It is valued at over £10 million; around one-third of this is backed by cash.