Moss Bros non-executive director and Baugur board member Don McCarthy has firmly reiterated the Icelandic investor’s commitment to working with Moss Bros shareholders and management to revive the menswear retailer.

McCarthy told Retail Week: “Our view is that it should be turned around as a private company, but if we can’t do it in private, we will do it in public.”

His comments followed speculation that Baugur would divest some or all of its 29 per cent stake in the retailer after walking away from the£40 million bid at the end of May, citing an “unacceptable” risk presented by changes to the retailer’s share register.

At the time, Baugur chief executive Gunnar Sigurdsson said Baugur was “keen” to work to “identify ways to unlock the potential in the business”.

McCarthy said Moss Bros’s turnaround would be aided by an injection of fresh management blood. A replacement for chairman Keith Hamill, who is poised to step down, is expected to be announced within weeks. It remains unclear whether chief executive Philip Mountford will continue at the retailer.

Former director and member of the founding Moss family David Moss said: “All hope is resting on a new chairman to inject dynamism into the business and drive it forward.”

Moss added that a successful turnaround could be achieved if “Baugur sets its mind to it and forgets about the fact it only has 29 per cent”.

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