Philip Day tables takeover bid after acquiring 52.4% stake in Bonmarché
Billionaire retail specialist Philip Day has launched a takeover bid for the Bonmarché fashion chain after his Spectre Holdings company acquired a 52.4% stake in the business.
Day is also the owner of Edinburgh Woollen Mill.
As Spectre now owns more than half of the retailer’s shares, this has triggered a mandatory takeover bid and Spectre has offered to buy the remainder of the business at the same price per share of 11.445 pence.
The retailer has been struggling of late and announced last month that it expects to make an underlying pre-tax loss of between £5 million to £6 million for the year to 31 March 2019.
Bonmarché operates over 300 stores and concessions across the UK and employs around 1,900 staff. Today the retailer issued a statement saying it is considering the terms of the offer.
Spectre said it intends to complete a store-by-store profitability assessment and that those shops identified as underperforming may be closed unless reduced rents, staff reductions or other cost saving measures can be implemented.
It will also review Bonmarché‘s product range, pricing policy and discounting strategy, and analyse all existing product supply arrangements.
In addition, Spectre will review staffing and working practices at the retailer’s UK distribution centre, although it said it does not intend to close the facility.
Spectre said: “Against the backdrop of the significant decline in Bonmarché’s profitability, Spectre believes it is well positioned to provide advice, guidance and support to secure the long-term future of the Bonmarché business, its stores and employees.”
