More than a thousand jobs are likely to be saved with an expected management buyout at Robert Dyas, the hardware store chain.

It was feared the business, which has around 100 stores across Kent, including Sevenoaks, Maidstone, Tonbridge, and Bexleyheath, and the South East, was about to go into administration and become the latest retail victim of the credit crunch.

But reports over the weekend suggest a buyout by bosses is close. They are working with the Lloyds Banking Group to seal a deal which would save more than 1,200 jobs. The stores are reported to be operating profitably with all outlets remaining open,

The chain is owned by private equity group Change Capital Partners which bought Robert Dyas for £61m five years ago. CCP would no longer be involved in any deal.

Robert Dyas was founded in 1872 by Irishman Robert Dyas who emigrated to London. He set up his first store in the capital and at his death operated 66 stores.

The chain specialises in kitchenware, household items, electrical appliances, home office, gardening products, power tools, china, giftware, glassware, DIY and a wide range of ironmongery. His sons and grandsons were involved in the business until the early part of this century.

In recent years, the retailer has faced intense competition from rivals such as Wilkinson.