Sir Philip Green should suit Moss Bros

Green is in talks with Moss Bros management and shareholders about his intentions for the business. The reaction is likely to be mixed as Moss Bros’ fractious shareholders come together to hear its latest suitor’s intentions.

However, the redoubtable Green should be unfazed. He's used to getting his way and brings something to the table that his Icelandic predecessors could not quite muster; on-the-ground retail nous, infrastructure cost savings and a touch of glamour.

As one shareholder said, Green’s move is “of acute interest”. Another source said shareholders should be pleased with the news.

Whether Green stays a shareholder or takes control, Moss Bros will benefit from re-energising its brands – which include its eponymous fascia and Cecil Gee and operates the likes of Hugo Boss – by the potential to introduce them to Bhs and Burton group.

Central overheads will be reduced by amalgamating Moss Bros with Green’s infrastructure.

What Moss Bros means for Sir Philip Green

So what’s in it for Green? Moss Bros is an unsexy brand by comparison with his Topshop and Miss Selfridge brands, but its suit hire business is its gold nugget. And in a downturn it could be resilient.

It also reflects Green’s determination to keep retail businesses afloat, not only for the good of the UK high street, but to prevent an influx of cheap stock on the market as the pre-Christmas Sale jitters begin.

Perhaps what was once touted as the mainstay of Baugur’s plans to create a male Mosaic fashion group could become key to a male Arcadia.

But he will need to bring the right price to the table. In order to be successful, any offer will have to be at a substantial premium to the 24.95p he paid for his 27 million shares and to the 42p-a-share offer Baugur made earlier this year.

Where next for the Arcadia boss?

And will Green stop at Moss Bros? He propelled himself in to a media scrum last month when he flew to Reykjavik flanked by Baugur bosses to do a quick-fire acquisition of the investor’s£1 billion to£2 billion debt. The Moss Bros deal was brokered by an 11th hour phone call from the investor.

If the price was right, no doubt Green would consider buying other parts of the Baugur empire, which the investment company may not be in a position to turn down.

However, Green says he is not looking at Baugur’s holdings in Debenhams or French Connection.

Which just leaves its private retail holdings, which include House of Fraser and Mosaic. Green will no doubt want some say in the future of the latter in particular.

However, his hands are tied until the Icelandic government restructures its banking system. As one private equity boss circling the fall-out pithily put it, the process remains “glacial”.

Moss Bros would do well to not be left out in the cold in what is a dramatically evolving high street.