Major Bonmarché shareholder sells out to Philip Day
The chances of Philip Day achieving full control of low-price womenswear retailer Bonmarché have increased with the company’s third-largest shareholder having sold its stake to Day’s Spectre Holdings investment company.
Cavendish Asset Management last week had said that it was “disgusted” at Bonmarché’s U-turn that saw it recommending the £5.7 million offer it had formerly rejected after its very weak trading made its situation untenable.
Cavendish held a 10.8% stake and sold it for £600,000. The retailer’s shares are currently trading at less than 12p each, well down from their high of 122.5p each less than a year ago and 316.5p in 2015.
Day had already controlled almost 53% of the company and despite putting a time limit on his previously open offer due to the deterioration in the company’s trading, still looks likely to gain control. The Cavendish stake puts his holding at close to two-thirds of the company's total shares and if it reaches 75%, the firm will be delisted.
Day’s offer closes on July 12 and Cavendish fund managers Paul Mumford and Nick Burchett told Press Association that they sold the shares in order to avoid holding a stake in a delisted company.
Mumford also accused Bonmarché’s management of being “incompetent” and 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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