Men’s suits and formalwear specialist Moss Bros says the firm that had committed to a takeover of the company in a GBP22.6m (US$27.9m) deal last month is planning on pulling the offer.
The retailer announced on 12 March its board has agreed to the terms of a cash offer of 22 pence per share by Brigadier Acquisition Company (Bidco), which is majority-owned by Regiment Acquisition Company, which is, in turn, majority-owned and controlled by Menoshi ‘Michael’ Shina, the owner of Crew Clothing. The acquisition was due to close in the second quarter of this year.
But yesterday (22 April), Moss Bros announced in a bourse disclosure the takeover firm is looking at backing out of the deal. The news sent share prices in the menswear chain tumbling.
The suit retailer says it will take all necessary action to prove Brigadier is not justified in its move to pull the offer.
Moss said on 24 March it was temporarily closing all its stores and sounded a warning on its full-year revenue and profitability as a result of the coronavirus outbreak impacting trading.
Yesterday, L Brands reported the private equity firm that had entered into a deal to acquire its Victoria’s Secret brand was also looking at pulling out of the agreement.