Edinburgh Woollen Mill Group, billionaire Philip Day’s offer for £5.7m has now been accepted by troubled womenswear retailer Bonmarche.
In a U-turn from the previous rejection the company has recommended to shareholders that accept the 11.4p per share that was offered in April.
Bonmarche said, “Whilst the board’s view remains that the offer does not adequately reflect the potential longer-term value of the business, the increase in uncertainty that has developed reflecting the trading and financial position of the business during the first quarter of the financial year makes the certainty represented by the offer potentially more attractive in the short term.”
Day who is behind Jane Norman, Austin Reid and Peacocks bought more than half the shares in Bonmarch that triggered a mandatory takeover bid.
Bonmarch issued their third profit warning in just six months triggering the retailer to accept the bid.