// EWM owner Philip Day is closing his offer on Bonmarché’s remaining shares
// Deadline is July 12
// Day’s firm Spectre had acquired 52.4% of Bonmarché’s shares in April
Edinburgh Woollen Mill owner Philip Day has said he is closing his offer to buy the remaining shares in Bonmarché, following poor trading at the womenswear retailer.
Day’s firm Spectre Holdings said it was closing its £5.7 million offer because the future of the business remained uncertain.
Spectre had acquired 52.4 per cent of Bonmarché’s shares in April, which entitles him to a mandatory takeover bid.
Spectre offered to buy the remainder of the shares for the price it paid at 11.45p.
However, Bonmarché’s board rejected the offer because it “undervalues” the retailer.
Earlier this week, it did a u-turn and said the offer was now “more attractive” after revealing poor trading results in its first quarter.
“In light of the Bonmarché board’s latest trading update, Spectre now believes that the passage of time, and a further decline in the performance of Bonmarché, has eroded Spectre’s ability to provide the advice, guidance and support needed to secure the long-term future of the Bonmarché business, its stores and employees,” Spectre said in a statement.
“Spectre is especially concerned by the suggestion that PwC, Bonmarché’s auditor, may shortly express uncertainty about the company’s ability to continue as a going concern in its FY19 accounts.”
Spectre must give 14 calendar days’ notice before closing the offer.
The offer will close on July 12.
Until then, Spectre is able to acquire any shares that become available.