// Bonmarché may consider Edinburgh Woollen Mill owner Philip Day’s £5.7m offer
// Bonmarché recorded poor trading during the first quarter
Bonmarché’s board of directors have warmed up to Edinburgh Woollen Mill owner Philip Day’s offer following poor trading in the first quarter.
Day had made a £5.7 million offer in May which now seems “more attractive” to Bonmarché, which had previously recommended shareholders to reject the offer.
The womenswear retailer said its recent unsteady trading was due to “the continued weakness in the underlying clothing market” and a “lack of seasonal weather to counteract it”.
Bonmarché also said there was a “significant degree of uncertainty” regarding reaching its profit target for the financial year.
The board has called on shareholders to accept Day’s offer despite it still being of the view that the price “does not adequately reflect the potential longer-term value” of the retailer.
Bonmarché’s financial advisors PwC have questioned whether the business can continue without its trading improving, but have also questioned Day’s plans.