Icelandic investment group Baugur has scrapped its offer for menswear retailer Moss Bros after a drawn-out four-month process.

Baugur said in a statement today that the bid is not in the best interests of stakeholders and that it would not be proceeding with its preliminary 42p-a-share offer.

The investment group said that since the original proposal was submitted to the board of Moss Bros, there have been a number of changes to the composition of the company’s share register. This meant that “the execution risk associated with completing the proposed offer has become unacceptable”.

Baugur chief executive Gunnar Sigurdsson said: “We are disappointed by recent developments that have effectively frustrated our proposed offer, but remain supportive of the management team. Baugur is keen to continue to work with the board, management and other major shareholders to identify ways to unlock the potential in the business.”

Baugur, which owns retailers such as Karen Millen, Oasis and Hamleys, is now unable to bid again for Moss Bros for six months from today.