The Brigadier Acquisition Company is reportedly seeking to retract its £22.6m offer to takeover Moss Bros.
The Moss Bros board announced that it had been informed that the potential buyer was now seeking a ruling from the City Takeover Panel in an update posted this morning (22 April).
The clothing retailer said that the requirements of the Takeover Code state that Bidco is not allowed to invoke a condition “so as to cause the offer not to proceed, to lapse or to be withdrawn”, however.
The board has now confirmed that it will “take all necessary action” to make its case that the offer must not be permitted to lapse.
Brigadier, which is controlled by Menoshi “Michael” Shina, the owner of Crew Clothing, had agreed to buy the business for 22p per share for a total of £22.6m on 12 March.
Two weeks after the deal was completed, Moss Bros was forced to close all stores in light of the ongoing coronavirus pandemic.
Despite Brigadier’s intention to invoke a condition and lapse its offer, a shareholder meeting to approve the deal is still scheduled to take place on 29 April.
Further announcements will be made “as appropriate”.