Struggling men's wear retailer Moss Bros Group Plc has received a takeover bid from Icelandic investor Baugur Group hf that values the business at GBP40m (US$78.7m).

Moss Bros said in a statement today (25 February) that it has received an indicative offer of 42p per share from a new company to be formed by Baugur and certain investment partners.

The company granted due diligence access to the potential bidder - but said its board was not unanimous and that Mark Bernstein, a director who speaks for the founding Moss family, "dissented from this decision."

News of Baugur's bid interest, which was first rumoured last December, came as Moss Bros issued its second profit warning in two months.

The retailer, which trades as Moss, Cecil Gee, Savoy Taylors Guild and Hugo Boss, said profit in the year to end-January 2008 will be lower than management's previous expectations.

Total sales for the year are down 3.2% it added, as a result of planned store closures.

Baugur, which owns UK high street retailers including Karen Millen and Oasis, already has a 29% stake in Moss Bros through Unity Investments.