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Edinburgh Wooden Mill owner Philip Day has set a deadline on his £5.7m offer for Bonmarché after officially closing his offer following poor trading at the business.
Day’s firm Spectre Holdings said it is closing its offer to buy the remaining shares at 11.45p, because the future of the business looks uncertain.
The news comes after The board of embattled womenswear retailer had reversed its opposition to the offer earlier this week, with the company asking its shareholders to accept the offer.
In an update to shareholders the board explained its change of stance citing “poor” trading during the first quarter of the financial year. It attributed this to the “continued weakness in the underlying clothing market, and a lack of seasonal weather to counteract it”.
However in a statement Spectre said: “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 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 now give 14 calendar days’ notice before closing the offer. The offer will close on July 12 and until that time Spectre is obliged to acquire any shares that come available.
