Head of Greenwoods John Hanson told The Times newspaper today that he was "withdrawing" from the process because the Moss and Gee families, who own a combined 26% stake, were "holding out for a higher offer".
He added that he may consider selling his 2.8% stake in Moss Bros as a result.
Hanson's exit from the bidding process has fuelled rumours that their is another bidder courting the Moss and Gee families and who is willing to take on Baugur, who tabled an indicative offer of £40m for the business last month. Laura Ashley has built up a 5.96% stake in the retailer and a mystery investor bought a 7.9% stake in Moss Bros on Friday. The Times quoted city sources as saying a Swedish company and an Egyptian business were also watching Moss Bros and may enter the fray.
Baugur, which has a 29% stake in Moss Bros, is in the process of due diligence.