The buyer of UK suit and formalwear specialist Moss Bros has had its proposal to pull out of the sale rejected by the Takeover Panel.

Brigadier Acquisition Company (Bidco), which is majority-owned and controlled by Menoshi ‘Michael’ Shina, the owner of Crew Clothing, last month said it was planning on pulling out of the GBP22.6m (US$27.9m) agreed deal.

It cited the impact on Moss Bros of the Covid-19 pandemic and related UK Government measures as its reason for pulling the offer.

Moss Bros had temporarily closed all its stores and sounded a warning on its full-year revenue and profitability as a result of the coronavirus outbreak impacting trading. 

Today (20 May), the Takeover Panel published its ruling in which it said Brigadier could not invoke any of the relevant conditions in relation to its acquisition of Moss Bros.

“Having considered each of the submissions received and the further representations made, the Panel executive has ruled that Brigadier has not established that the circumstances which give rise to its right to invoke the relevant conditions are of material significance to it in the context of its offer as required by Rule 13.5(a) of the Takeover Code and, therefore, that Brigadier should not be permitted to invoke any of the relevant conditions at this time.

“Brigadier has been given a short period of time in which to decide whether to request a review of the Panel executive’s ruling by the hearings committee of the Takeover Panel.”