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 shares following a profit warning last week.
Shares hit a five-year low after the retailer reported like-for-likes fell by more than 3 per cent during the previous seven weeks. Chief executive Philip Mountford said the predominantly male customer base of Moss Bros had stopped spending in the wake of the economic downturn. The retailer said it will cut 10 per cent of its supplier base and may have to cut jobs.
Shares closed on Friday at 37p valuing the company at£35 million.
The takeover will boost Baugur’s sparse menswear portfolio and is likely to create menswear buying power with its department store brand House of Fraser.
The Icelandic investor 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.
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