Moss Bros welcomes Takeover Panel ruling preventing bidder from retracting its offer
Moss Bros has welcomed the ruling by the Takeover Panel that prevents Crew Clothing's owner from retracting its offer for the menswear chain.
Brigadier Acquisition Company made a £22.6m bid for Moss Bros just prior to the COVID-19 lockdown but a little over a month later said it was seeking to withdraw the offer and lodged a submission with the Takeover Panel citing the material adverse change condition to the business on account of the impact of the coronavirus crisis.
The panel however has ruled that the change in conditions does not warrant the retraction of the offer. Brigadier, which is led by Menoshi Shina, now has a short period to time to decide whether it wishes to appeal the decision.
Moss Bros issued a short statement to the Stock Exchange this morning to say that it "welcomed" the decision and said it would make a further announcement when appropriate.
Liad Meidar, managing partner of Gatemore Capital Management, a significant shareholder in Moss Bross, said: “We are pleased with the initial ruling of the Takeover Panel and believe this sets the right precedent. The deal to take Moss Bros private, which was agreed after the World Health Organization identified Covid-19 as a pandemic, was designed to provide management with the appropriate structure to execute the ongoing transformation plan and achieve Moss Bros’s full potential, and it is only right that the company is given the opportunity to fulfil this.”