Billionaire businessman and Edinburgh Woollen Mill-owner Philip Day is on track to take Bonmarché Holdings Plc private after securing an 82.96% stake in the struggling UK women’s value clothing retailer.
Last week Bonmarché’s chief executive and chief financial officer sold their shares in the business to Day’s investment vehicle Spectre Holdings, which bought a 52.4% stake in the retailer back in May, triggering a mandatory takeover bid.
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And today (10 July) the retailer said its second-largest shareholder, Artemis Investment Management, had offloaded its 12% stake to Dubai-based Spectre.
Bonmarché has released several negative trading updates recently, with shares tumbling in March following a profit warning. The retailer forecast underlying profit before tax loss for the year of between GBP5m and GBP6m (US$6.64bn-$7.97bn), compared to a range of breakeven to a loss of GBP4m forecast in December.
At the end of June, Bonmarché’s board swung in favour of an offer for the business from Day.
Spectre has already said it would look to “reduce the cost base to a sustainable level whilst minimising the impact on operational performance,” warning of a “material reduction in headcount” across Bonmarché. According to its website, Bonmarché employs 1900 full-time equivalent staff and has 312 shops.
Day’s Edinburgh Woollen Mill empire includes brands such as Jaeger and Peacocks.
