Baugur said in a statement this morning that despite completing due diligence and arranging the necessary funding, it had concluded that it was not in the best interests of stakeholders to proceed with its offer for Moss Bros.
Baugur added in the statement that since its original 42p per share proposal in February, there had been a number of significant changes to the composition of the company's share register. As a result of these changes, Baugur said it believed that the execution risk associated with completing the proposed offer had 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."
Since February, Laura Ashley has bought shares in the company, giving it a stake of nearly 10% in the business. In addition, the Moss and Gee family shareholders have been publicly opposed to Baugur's offer since it emerged, claming it undervalued the business.