Investment firm Baugur confirms Moss Bros interest
Icelandic investment group Baugur today confirmed it was considering a possible offer for high street retailer Moss Bros.
Baugur, which has a 29% stake in the firm, said it was looking at options including a potential approach to the board of the menswear specialist.
Although Baugur gave no hint over the level of any possible bid, shares in Moss Bros surged 18% higher today after weekend reports of a possible £40m (€55.5m) approach.
The Icelandic investor already owns several UK high street names including Hamleys, Karen Millen, Oasis and House of Fraser.
The bid speculation comes a week after Moss Bros joined a host of high street names in warning over profits. It said results were “unlikely” to meet expectations after recent poor trading.
News of Baugur's potential approach comes as the group takes a hit on its other retail investments in a tougher climate for consumer spending.
The company has a 20% stake in fashion chain French Connection – another firm to warn on profits in November – as well as a 13.5% share of department store chain Debenhams, which has struggled since its return to the stock market last year.
Moss Bros said last week that weak recent trading had dragged second half like-for-like sales down 1.5%, although it hopes for a boost from Christmas trading.
The retailer, which is carrying out a revamp of its stores, has also seen its hire business hit by poor weather and is looking to reduce the impact of slower trading through cost reductions and tighter stock control.
The group has 154 outlets, with stores also branded the Savoy Taylors Guild and Cecil Gee, serving more than 300,000 customers every year.
Moss Bros was launched in 1851 as a second-hand store and created in its current form from the merger of Moss Bros Hire and Cecil Gee in 1988.
