High StreetM&A

Bonmarché shareholder slams company as it sells stake to Day

Investment company Cavendish Asset Management has sold its 10.8% stake in fashion retail Bonmarché to Spectre Holdings, a company owned by retail tycoon Philip Day.

The £600,000 deal has now increased the businessman’s stake, increasing his chances of a takeover.

The news comes after Day closed his £5.7m bid to buy the company as he said its future looked “uncertain”. The offer will close on 12 July and until that time Spectre Holdings is obliged to acquire any shares that come available.

In April, Spectre acquired 52.4% of Bonmarché’s shares, triggering a mandatory takeover bid. If Day gains more than three quarters of the shares, he can take the company off the stock market.

At the time of the sale, Cavendish criticised Bonmarché for initially rejecting Day’s offer, then accepting it a month later in a u-turn. Speaking to the Press Association, fund managers Paul Mumford and Nick Burchett said they sold their stake to avoid having shares in a delisted company.

Mumford said: “They’ve caved in and they’ve said there’s no alternative. They’ve just sort of thrown in the towel. We’re heartily fed up of that and unfortunately decided to move on.”

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