Fashion retail tycoon Sir Philip Green is considering a takeover bid for Moss Bros after spending GBP6.7m (US$10.2m) on a 28% stake in the company.

Green, who owns the Bhs department store chain and fashion retail group Arcadia, used family investment company Warbeck to buy nearly 27m shares in the men's wear chain, paying 24.95 pence a share.

He bought the stake from Iceland's Kaupthing Bank, which held them on behalf of Icelandic investment company Baugur, and said he was considering his options for the rest of the company.

"Warbeck is considering its alternatives in relation to Moss Bros,which include making an offer for the remaining shares it does not already own, however there can be no guarantee that any offer will be made," Warbeck said in an announcement to the London Stock Exchange.

Baugur's own GBP40m takeover bid for Moss Bros collapsed in May this year, partly because of the company's concerns over the 10% stake held in the company by fellow retailer Laura Ashley.

Green held talks with Baugur and Kaupthing last month after the Icelandic banking system was plunged into turmoil by the global financial crisis.

It is understood that Green discussed the possibility of acquiring Baugur's debt, which would potentially give him a large stake in the company's UK retail investments, including Jane Norman, Mosaic Fashions, Woolworths and Debenhams.