Bilton has designs on Austin Reed

PARTY-LOVING property man Anton Bilton is said to be considering a surprise swoop on troubled classic clothing group Austin Reed, but is unlikely to make a formal move before Christmas.

Shares in Austin Reed, which recently completed an extensive £12m revamp of its flagship Regent Street store, tumbled on Thursday as it became the first retailer to issue a pre-Christmas profits warning.

It said sluggish sales in recent weeks had led to an 11.7% drop in like-for-like turnover in the 15 weeks to 22 November, and warned that full-year profits would be 'significantly lower' than market expectations of about £5m. The forecasts were slashed to little more than £1m.

The shares were steady today at 136 1/2p, after Thursday's 8% tumble. At this level, the company is valued at about £43m.

Bilton, grandson of the late property tycoon Percy Bilton, is a familiar fixture on London's party circuit.

He has also launched a string of deals in the past few years, including the £7m takeover of nightclubs and bar operator Po Na Na.