Blog: Leonie BarrieLaura Ashley lining up for Moss Bros?

Leonie Barrie | 27 March 2008

Laura Ashley continues to deny that it is lining up a takeover bid for troubled men’s wear retailer Moss Bros – even though it has raised its stake in the firm five times in the course of a month. The women’s wear and home furnishings group now has a 5.96% share in Moss Bros, but continues to insist it merely sees this as an investment opportunity.

If that’s the case, then here’s an interesting question: if it’s not considering a counterbid, then why is it buying shares (at GBP0.46) above an offer price (of GBP0.42) already tabled by Icelandic investor Baugur?

Laura Ashley, which is controlled by Malaysia's MUI Group, is on the up again after years in the doldrums. It today posted a 62.3% surge in pre-tax profits in 2007, while sales rose 5.6%.

Not only would it benefit from adding men’s wear to its product line-up, but it could also get a less hostile reception from the Moss and Gee families, which own a combined 27% stake in Moss Bros and vehemently oppose Baugur’s bid.

UK: Laura Ashley FY profits surge 62%


BLOG

A deep dive to unlocking digitisation's potential

So far, the promise of digitisation in the apparel industry remains largely unfulfilled. But with opportunities for new cheap supplier countries nearly exhausted, it is now seen as offering sourcing e...

BLOG

Kingpins Goes to DC – Watch now

The challenges and opportunities facing today’s textile and apparel industry is also explored in the second in a series of expert panel discussions that is now available to watch on demand...

BLOG

Industry outlook positive but disruptive

How is the global apparel sourcing landscape changing? According to executives at last month’s MAGIC fashion trade show in the US, "speed-to-market," "product differentiation" and "inventory control" ...

BLOG

Speed-to-market can be slow to achieve

It's easy for brands and retailers to see how they can potentially benefit from a successful speed-to-market program – but the irony is that without the support of strategic suppliers, it can be a lon...

just-style homepage



Forgot your password?