Scottish family clothing firm Slater Menswear revealed as mystery bidder for Austin Reed

A bidding war for Austin Reed looks set to break out this week after it emerged that Slater Menswear, a Scottish clothing company, was behind an approach to the company, prompting a number of rivals to start circling the upmarket outfitters.

Austin Reed was forced to confirm to the stock exchange last week that it was in talks with an interested party when rumours that the high street tailor had received an approach sent its share price soaring.

Since the announcement, a number of interested parties have been in touch with Austin Reed about the possibility of opening talks. Richard Thompson, who bought the Jaeger and Viyella fashion brands from Coats earlier this year, is thought to be considering a bid. Marzotto, an Italian fabric manufacturer that makes suits for Marks & Spencer and Burtons, is also understood to be interested in Austin Reed. It considered a bid for the company last year. Harold Tilman, chairman of the fashion group, BMB, may also enter the fray.

Slater, a privately owned firm which claims to own the largest menswear store in the world, in Glasgow, has begun talks with Austin Reed. It has 14 stores, mainly in the north of England and Scotland, which sell suits and casualwear from designers such as Valentino and Jasper Conran at a substantial discount. The family is thought to have built up a £30m fortune from the menswear business it began in 1973.

Paul Slater, the managing director of the family run business, is leading the talks. No formal bids have been tabled, although the board, led by chief executive Roger Jennings, is considering its options. Austin Reed is thought to be worth about £60m.