Upmarket clothing retailer Austin Reed said on Friday it had rejected an unsolicited approach from property group Dawnay Day Corporate Finance Ltd.

The property group said earlier on Friday its owners, Guy Naggar and Peter Klimt, had made a takeover approach at 131 pence a share in cash to Austin Reed.

The board has reviewed this approach carefully, in conjunction with its financial advisers Close Brothers, and believes that the level of the proposed cash offer significantly undervalues Austin Reed and its prospects, Austin Reed said in a statement.