The offer of at least 300 pence a share compares to a Sears share price which yesterday closed up 5.5p to 202p.

Sears is aiming to sell both its properties and credit card business.

Mr Reid was quoted in the newspaper as deriding 300 pence as "a ludicrous price", adding that he is refusing to take seriously any offers below 500p a share.

The newspaper said the venture capitalists' proposal was not put to the Sears board.

Mr Reid is quoted as saying that if shareholders wanted the chance to consider the proposal, "They will have to call an EGM".

The Times said Mr Reid considers that the credit card and property business alone are worth some 200 pence a share.

Fair value

But Sears' broker Dresdner Kleinwort Benson recently put the break-up value of the group at 325 pence a share and concluded that "fair value is over 300 pence".

The Times said the venture capitalists will be talking to fund manager Philips and Drew - which holds a 24% stake in the company - to try to win support for the offer. Mr Reid was quoted as saying that more than one approach was made to buy the business.

One of Sears main rivals, N. Brown Group, is said to have proposed a takeover of the company at 255p a share this autumn but the offer was also rejected.

Sears demerged itself from its most famous business, Selfridges, last year.

It has also had difficulty in disposing of its troubled shoe businesses.