Baugur confirms Moss Bros bid interest

In a stock exchange announcement this morning, Baugur said it was considering its options in relation to Moss Bros, which may include making an approach to the board of Moss Bros regarding a possible offer.

In a swoop predicted by Retail Week in October last year, Baugur, which owns 28.5 per cent of Moss Bros through its Unity Investments subsidiary, is understood to be taking advantage of a plunge in the clothing retailer’s shares, following a profit warning last week.

Moss Bros shares hit a five-year low after the retailer reported that like-for-likes fell more than 3 per cent in the previous seven weeks. Moss Bros chief executive Philip Mountford said that Moss Bros’ predominantly male customer base had stopped spending in the wake of the economic downturn. The retailer said that it will cut 10 per cent of its supplier base and there may be job cuts.

Shares closed on Friday at 37p, valuing Moss Bros at£35 million.

The takeover will increase Baugur’s sparse menswear portfolio and is likely to create menswear buying power at its department store chain House of Fraser.

Icelandic investor Baugur owns a string of womenswear brands via its Mosaic conglomerate and is expected to hive off its Whistles brand with retail fashion guru Jane Shepherdson at the helm.