Baugur had been hoping to add Moss to its portfolio of UK stores, which includes Hamleys and House of Fraser.

It made an indicative 42p-a-share approach in February and since then it has secured the necessary funding and successfully completed its due diligence investigation.

But its bid was scuppered after homewares and fashion retailer Laura Ashley and French bank Crédit Agricole built up stakes of about 10 per cent and 8 per cent respectively.

Because both had paid above Baugur’s offer price, it was unlikely they would sell out at 42p to Baugur, which owns 26 per cent of Moss Bros.

“It is not in the best interests of stakeholders to proceed with the offer,” Baugur said.

Baugur’s chief executive, Gunnar Sigurdsson, said it remained supportive of Moss management and would work to identify ways to unlock the potential in the business.

Moss Bros shares fell 5.25p to 40.25p.