Bonmarché is on track to be taken private after Philip Day convinced the retailer’s last major investors to sell its stake.
Investment fund Artemis offloaded its 12% stake in the embattled high street fashion chain yesterday to Day’s Dubai-based holding company Spectre.
The sale brings Day’s total stake in Bonmarché to more than 82%, above the 75% needed to take the business private.
At the beginning of July, another institutional investor, Cavendish Asset Management, sold its 10.8% stake to Day for £600,000.
Day, the boss of Edinburgh Woollen Mill Group, which owns Edinburgh Woollen Mill, Peacocks, Jaeger and Austin Reed among others, launched a cut-price offer for Bonmarché in April after snapping up a 52.4% stake.
His initial £5.7m offer was rebuffed by Bonmarché as it “fundamentally undervalued” the business in the eyes of the board, but that decision was reversed following tough first-quarter trading.
Day responded by imposing a deadline on his offer to buy the retailer, saying he was worried about its ability to operate as a going concern, an issue also flagged by its auditor PwC.
The deadline was due to expire tomorrow.