However, industry sources believe the swoop by Green – broken exclusively by retail-week.com on Wednesday – could signal the first in a series of acquisitions of Baugur’s assets, with potential buyers including the Arcadia owner.
Speculation about Baugur’s future has been constant since the global economic crisis hit Iceland and led to the collapse of its banks. Green flew to Iceland in an attempt to buy Baugur’s debt, opening the door to control of retailers including Hamleys, Oasis and Karen Millen.
Baugur sold its stake in Moss Bros – in which it had invested through its Unity vehicle along with entrepreneur Kevin Stanford – after twice failing to buy the menswear retailer, most recently offering 42p a share. On the same day, Unity reduced its stake in French Connection to 17.65 per cent from 20.13 per cent.
Baugur and Unity still retain substantial interests in quoted retailers including variety store group Woolworths, Debenhams and Saks in the US.
A Baugur spokesman said there was no intention to dispose of stakes other than when there was “no strategic value” – as was the case with Moss Bros – or a sufficiently high premium was offered.
Green’s stake in Moss Bros is just short of the 29 per cent stakeholding required to force an offer for the menswear retailer, but the tycoon is understood to be interested in buying the entire business.
Green would, however, have to win over the divided Moss Bros shareholders, which include the founding family members and retailer Laura Ashley.
A deal would help reduce Moss Bros’s£13 million central overheads by enabling the pooling of back-office resources. Green could also leverage Moss Bros brands, including Cecil Gee and Hugo Boss, at his Bhs stores and Burton.
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