Men's Wearhouse has increased its bid for US men's apparel and footwear business Jos A Bank Clothiers as the battle for takeover between the two retailers continues.

The retailer has submitted a cash tender offer for all outstanding shares of Jos A Bank of US$63.50 per share, up from its previous offer of $57.50 per share.

The move comes just over a week after Jos A Bank revealed plans to buy outdoor wear brand Eddie Bauer from private equity firm Golden Gate Capital in a deal worth $825m.

Jos A Bank, however, left the door open, saying it could terminate the deal if it receives an acquisition offer that would create "greater value for Jos A Bank's shareholders than the Eddie Bauer transaction and issuer tender offer".

In its announcement today, Men's Wearhouse said it could potentially increase its offer price to $65 per share if it is able to conduct limited due diligence, and have access to Jos A Bank's management team. The offer is also conditional on the company terminating its agreement with Eddie Bauer.

Men's Wearhouse CEO Doug Ewert added that, as part of the negotiations, it would be willing to discuss offering Jos A Bank shareholders the opportunity to choose to receive Men's Wearhouse stock for part of its proposal.

Last week, Eminence Capital, a major shareholder in Jos A Bank Clothiers, said the apparel firm's acquisition of Eddie Bauer was a "poor strategic decision" and "destroys shareholder value".

Eminence, which owns a 4.9% stake in Jos A Bank, accused the company of issuing "suspect and misleading financial guidance" in a bid to justify its decision. It also suggested the price paid for Eddie Bauer was too high.