// One of Bonmarché’s largest shareholders “disgusted” by u-turn on Philip Day’s takeover bid
// Cavendish Asset Management is Bonmarché’s third-largest investor and has a 10.8% stake
Bonmarché’s recent u-turn on Philip Day’s £5.7 million takeover offer has faced backlash from one of the retailer’s largest shareholders.
Cavendish Asset Management, which is Bonmarché’s third-largest investor with a 10.8 per cent stake, said it was “disgusted” with the board’s decision to consider the bid from the Edinburgh Woollen Mill owner after initially rejecting it back in May.
At the time, Bonmarche’s board said the offer “materially undervalues Bonmarché and its prospects”.
However, yesterday the retailer said Day’s bid looks “more attractive” after it suffered from poor trading thanks to “continued weakness in the underlying clothing market” during its first quarter.
The firm’s share price plummeted over 25 per cent to 11.4p at the time.
“We’re disgusted Bonmarche has simply capitulated without consulting majority shareholders or even putting up a semblance of a fight,” Cavendish fund manager Paul Mumford told the Daily Mail.
“It seems management was looking at the short-term picture rather than long-term prospects.”