Moss Bros has received a provisional take over offer from Baugur as the menswear retailer issues another profit warning.

The bid, a cash offer of 42p a share, has been made by a new company, Newco – formed by Baugur and certain investment partners.

Mark Bernstein, a representative of family shareholders of Moss Bros, has dissented from the decision.

Like-for-like sales at the menswear retailer were flat for the last financial year, with total sales down 3.2 per cent, because of planned store closures. Moss Bros said that profits will be lower than management’s previous expectations.

In recent weeks increasing pressure had been placed on Baugur to reveal its hand after months of speculation that the Icelandic investor was considering a bid for Moss Bros.

In a statement, Moss Bros said it would undertake an internal reorganisation to improve efficiency and reduce costs as it battles increasingly tough trading conditions. It said that it hoped to keep redundancies to a minimum by putting on hold recruitment rather than reducing existing staff numbers.