The share price of Moss Bros Group increased more than 20% today (10 December) amid the possibility that Icelandic retail group Baugur was lining up a bid.

Shares in the suit chain jumped 20.81% to 45 pence as Baugur indicated that an offer could be on the cards, although it was by no means certain.

Baugur said in a statement to the London Stock Exchange: "Baugur confirms it is considering its options in relation to its indirect interest in Moss Bros, which may include making an approach to the board of Moss Bros regarding a possible offer.

"This announcement does not constitute an announcement of a firm intention to make an offer under Rule 2.5 of The City Code on Takeovers and Mergers and accordingly there can be no certainty an offer will be made."

Baugur, which already owns a 29% stake in Moss Bros through Unity Investments, could make an offer valuing the company at around GBP35m ($71.2m), reported local press.

Moss Bros issued a profit warning last week, saying that its full-year figures were unlikely to meet expectations.

The warning came on the back of lower sales levels in the past seven weeks in particular.

Like-for-like sales in the first 18 weeks of the company's second half were down 1.5%, with total sales down 3.7% as a result of planned store closures.