Laura Ashley gains 8 million pounds from selling Moss Bros stake

Clothing and homeware decor retailer Laura Ashely, has raised almost 8 million pounds

by selling its whole stake in Moss Bros, which occurred not long after the men's wear specialist reported positive holiday sales.

Laura Ashley first started to build up its stake in Moss Bros back in 2008, which led to wide spread speculation about a potential take over. Icelandic investment group Baugur, who owned 29 percent of the company at the time, came with a 42p share approach, but due to the Laura Ashley's own stake building it led to nothing.

The clothing and homeware decor retailer then chose to sell its 9.57 percent stake after Moss Bros share price grew, thanks to a 13 percent increase in underlying sales in the 5 weeks to January 11. The company is thought to have paid roughly 4p for the majority of its stake, therefore the sale 9.5 million shares at 84p would mean that Laura Ashley has almost doubled its initial investment.

The company stated that the money gained from the stake sale will be used to help improve Laura Ashley's financial stance and working capital. Moss Bros shares have grown up another 4p to 94.5p.