Bonmarché’s board has said that poor trading during the first quarter means the offer made by Philip Day looks “more attractive”, despite not having been improved.
The embattled retailer put its poor first quarter trading down to “the continued weakness in the underlying clothing market” and a “lack of seasonal weather to counteract it” and said there was a “significant degree of uncertainty” as to whether it would achieve its profit target this financial year.
The fashion brand’s board also called on shareholders to accept the £5.7m offer made by Edinburgh Woollen Mill owner Philip Day in May, despite it still being of the view that the price “does not adequately reflect the potential longer-term value” of Bonmarche.
PwC, the retailer’s financial advisors, have questioned whether the business can continue as a going concern without an improvement in trading of the rest of the financial year, yet have also “expressed concern” over Day’s plans for the business.
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