Austin Reed approached with potential offer

Austin Reed has been approached with a possible cash offer for the company.

Guy Naggar and Peter Klimt, shareholders of 29.9 per cent of Austin Reed, have approached the board to seek its recommendation of a possible cash offer at a price of 131p per Austin Reed share.

This represents a premium of 10 per cent to yesterday's closing share price of 119p and a premium of 24.7 per cent to the average closing share price of the past 12 months.

The approach does not amount to a firm intention to make an offer and there is no certainty that an offer will be made.

In June, Austin Reed revealed a 9.3 per cent rise in like-for-like sales for the 19 weeks to June 10. At the moment, the fashion group is in talks with potential partners to open main fascia and Country Casuals stores in the Middle East.