Ladieswear chain Bonmarche Holdings PLC (LON:BON) has been taken over by Spectre, a vehicle owned by Philip Day, the boss of Edinburgh Woollen Mills.
Dubai-based Spectre bought a 52.4% stake yesterday at a big discount to the market price and now made a mandatory offer for the rest of the shares.
The price of the offer is 11.445p per share, compared to 18p overnight.
Bonmarche has just issued its third profit warning in six months. The retailer now expects an underlying pre-tax loss of between £5mln to £6mln for the year to March.
Maureen Hinton, a director at global retail research group GlobalData, said: “This is an excellent result for Bonmarché, which is struggling following profit warnings and a challenging market.
“It rejoins its former sister company Jane Norman which Day saved several years ago and continues to trade.”
Hinton said that being taken out of the City reporting firing line would help Bommarche take a long-term view with its recovery strategy, while it would benefit from sharing the assets of the Edinburgh Woollen Mills group.
Shares fell 25% to 13.5p.