Moss Bros's takeover suitor revealed

SUITS group Moss Bros has received a takeover approach from BMB, formerly the menswear division of the William Baird textile company.

BMB's majority owner, rag trade entrepreneur Harold Tillman, phoned Moss Bros chairman Keith Hamill last week to discuss a possible deal.

Tillman is also thought to have approached deputy chairman Roland Gee, whose family, along with the Moss family, owns 38% of the company.

Moss Bros is also being stalked by venture capital companies, which are thought to be keen to lure management into making their own offer for the business that has been hit severely by its failed efforts to launch a casual clothing range.

The latest takeover action comes two months after Moss Bros fought off a takeover approach from Shami Ahmed, the fashion retailer behind Joe Bloggs jeans.

Shares in Moss Bros hit a peak of 43p in March, but have fallen back and closed last week at 33p, valuing the group at £30 million.

Hamill denied rumours that he was working with venture capitalists on a management buyout. 'Since Ahmed's approach we've been asked by a lot of intermediaries about what might be possible, but the business is not being touted round,' he said.

Tillman, who is a close friend of Bhs boss Philip Green, said: 'I have spoken to a major shareholder and to Mr Hamill. I am not interested in making a hostile bid. I believe this could be a cure for Moss Bros.'

Moss Bros suffered from the trend towards casual clothes and the 'dress-down Friday' trend in offices. It launched the Code stores to target the casual market, but group losses still rose to £4.9 million last year, prompting the scrapping of the Code name.

Moss Bros had sales of £141 million last year, £11 million more than BMB.