Menswear business Moss Bros has received an indicative offer for the business from Icelandic investor Baugur.
The indicative offer has been made via a new company, Newco, formed by Baugur and other investment partners. The company has been granted due diligence access.
Moss Bros director Mark Bernstein, who represents the Moss family which has a stake of 18.5%, dissented from the decision.
The Baugur investment vehicle Unity Investments, already owns 28.5% of the company. The Gee family has a 7.8% stake in the business.
Moss Bros also said that profits before non-recurring items for the 52 weeks ended 2008 would be lower than management’s previous expectations.
Like-for-like sales for the 52 week-period were flat compared to the previous year. Total sales were down 3.2% as a result of planned store closures.
Cash at the year-end will not be materially lower than the £16.6m reported for 2007, and average cash balances during the year were in line with 2006/07.
Old stock is considerably lower than last year, according to the company.
Moss Bros will consolidate roles in the business which were previously duplicated across the mainstream and fashion divisions, as part of a restructure. It said it hoped the number of redundancies would be kept to a minimum by putting hold on recruitment rather than by reducing existing staff numbers.
Moss Bros said it would update the market on the offer in due course.