David Moss to head £112m family bid
The Moss family intends to launch a bid for Moss Bros in an attempt to knock serial investor Baugur out of the running.

The bid effort, likely to value the retailer in excess of£112 million, is being led by David Moss, who was ousted from the board in 2001. Such a valuation would represent a massive premium to Moss Bros's share price, which was 61.25p as Retail Week went to press, but has been as high as 92p over the past year.

Moss Bros has been the subject of intense speculation since Retail Week revealed Baugur's plans to bid (RW, October 20). Dawnay Day directors Guy Naggar and Peter Klimt, who are in the process of acquiring rival chain Austin Reed, have also been linked to a bid.

The Moss family is believed to have become disillusioned with the retailer's management and believes that potential buyers do not have the retail interests of Moss Bros as their prime concern. Other shareholders are understood to be concerned that poor current trading would mean the business could be picked up too cheaply.

One source close to the Moss family said: 'Moss Bros is a great brand and it is not in the family's interests to let the business go cheaply to people with strange agendas. Trading has been suffering, but how bad is the market really? Marks & Spencer and John Lewis are both doing well.'

However, others suspect that a Moss family bid might be designed to flush a higher price out of Baugur. Ironically, analysts say any Moss family deal would probably need approval from Baugur, which is thought to have a significant interest in the retailer already via Unity, an investment vehicle it set up with retail entrepreneur Kevin Stanford. Unity is believed to hold a 28.7 per cent stake through contracts for difference.

Separately, Stanford, who acts as special adviser to Moss Bros, is understood to hold a 6.6 per cent stake. The Gee family, which merged its Cecil Gee business with Moss Bros in the late 1980s, also has a significant interest in the retailer. Both the Moss and Gee families have attempted to buy the business back in the past.

Baugur is still understood to be interested in bidding for Moss Bros, which it would use to create a menswear version of its Mosaic Fashions conglomerate.

Baugur and Stanford are likely to back chief executive Philip Mountford in any deal. However, the Icelandic investor is understood to be waiting for the trading statement due in January before making its next move.

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