Baugur reviewing Moss Bros bid

Source: Retail Digital

Date :07/05/2008 10:02:34

Icelandic investment group Baugur is currently reviewing results from due diligence carried out on Moss Bros ahead of its 42 pence a share offer, the menswear retailer reported yesterday.

The UK Group, which confirmed the £40 million bid proposal back in February, added that Baugur is still in the process of arranging financing and preparing documentation in relation to a potential offer.

In a statement, Moss Bros emphasised this does not amount to a firm offer and there is no certainty an offer will be made.

Retail sales

Last month, the firm revealed it has slipped into the red at the full year stage, as expected.

A profit before tax last year of £5.11 million turned into a loss of £1.38 million in the year ended 26 January, 2008 on revenue down to £130.17 million from £133.88 million a year ago.

In February’s update, full year like for like retail sales were flat, although total like for like sales in the first nine weeks of the new financial year are up 0.9 percent on the same period last year.

May 7, 2008