Moss Bros, the menswear retailer that Icelandic investor Baugur considered buying, has reported a 1.5 per cent fall in like-for-like sales for the 19 weeks to June 7.

Chief executive Philip Mountford said that, now that the distraction of a possible offer is out of the way, management would be fully focused on running the business, which is “well set up to navigate this difficult period”.

The retailer said it was managing working capital “very tightly”, that total stock balances were down 10 per cent and stock more than six months old was down 41 per cent.

Average daily cash balances were 10 per cent up on the comparable period last year.

Mountford said trading conditions remain “extremely challenging”, but insisted: “As the UK’s number one branded suit specialist, with a wide range of fashionable collections, we are well-differentiated from our competitors.

“With the distraction of a potential takeover bid now removed, management’s attention and energy will be refocused on driving the business through the short term as well as implementing our three-year strategic plan, to reinvest in our portfolio, grow the core Moss chain and develop our Asian supply chain.”

The retailer will pay a special dividend of 1.3p per share.

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