Retailer snapped up
Day adds troubled Bonmarche to EWM portfolio
Billionaire retailer Philip Day has acquired struggling retailer Bonmarche in a deal valuing the clothing chain at just £5.7 million.
Mr Day, who is owner of The Edinburgh Woollen Mill Group, bought more than half of the company’s shares, triggering a mandatory takeover bid.
At just 11.445p per share, the offer from Mr Day’s Spectre holding company, represents a significant discount on the company’s Monday closing price of 18p. Shares in the company were down 15.7% at 15p in early trading on Tuesday.
The deal comes after Bonmarche issued a profits warning last month, its third in just six months.
In a statement relating to the takeover offer, Spectre said: “Against the backdrop of the significant decline in Bonmarche’s profitability, Spectre believes it is well positioned to provide advice, guidance and support to secure the long term future of the Bonmarche business, its stores and employees.
“The owner of Spectre, Philip Day, has a successful track record within the retail sector, especially in turnaround and distressed situations.”
Mr Day’s retail empire includes Austin Reed, Country Casuals, Jaeger, Jacques Vert, Peacocks and Proquip, He had been expected to bid for the collapsed womenswear brand LK Bennett, though he later withdrew his interest. He was a rival to Mike Ashley’s Sports Direct for House of Fraser when it fell into administration last year.