Family-owned fashion chain Slater Menswear emerged from the shadows today to confirm its interest in buying retailer Austin Reed.
Slater rarely courts publicity but found itself in the limelight after reports pointed to it being the London-based company’s mystery suitor.
Today, managing director Paul Slater said the approach last week came from the Glasgow-based firm and that Royal Bank of Scotland would back any bid.
Austin Reed is currently considering the approach, which it said on Thursday “may or may not” lead to a full-blown offer.
Slater’s 14 UK stores are known for their size, with the Glasgow outlet in Guinness World Records as the world’s largest single menswear store.
But Slater is not thought to be alone in its interest in Country Casuals owner Austin Reed, which is valued at more than £42m.
Reports say a number of other parties have approached Austin Reed’s advisers after the first bid move became known.
Analysts think that a successful bidder would have to find between £50m and £60m.
Other possible suitors could include Richard Thompson, the entrepreneur who recently bought and sold Jaeger and Viyella, and the Italian firm Marzotto.
A successful bidder would gain 47 Austin Reed shops and 36 concessions outlets, plus 64 Country Casual branches and 139 concessions.
Austin Reed is suffering from difficult trading conditions and warned in January that profits would be below hopes because of poor festive sales.
The company is due to announce full-year figures on 9 April.
Shares have also almost halved in value during the last year but the recent bid speculation has prompted a rally from a low of 100p to 137.5p today.
As well as Glasgow, Slater has stores at Aberdeen, Edinburgh, Ayr, Newcastle upon Tyne, Leeds, Hull, Liverpool, Manchester, Chester, Nottingham, Birmingham, Cardiff and Canterbury.
An outlet is also planned at Cheltenham.
Slater has not detailed its plans for Austin Reed, particularly whether it intends to sell the womenswear division Country Casuals.
References: EGi News 31/03/03
