Fund managers slam bosses of Bonmarche after sale of stake

The asset management firm revealed on Friday that it has offloaded its 10.8 per cent stake, selling more than five million shares at 11.4p each, the price proposed by Edinburgh Woollen Mill owner Mr Day.

It comes a day after Mr Day’s holding company, Spectre, said it felt forced to close its offer for shares in the company, following a recent update which showed a decline in Bonmarche’s trading.

The offer is open for the next two weeks and could see Mr Day take the company off the stock market if he gains more than three-quarters of the issued shares. It is understood that Spectre’s current holding is above 65 per cent.

Cavendish has previously said Spectre’s offer was too low, but fund managers Paul Mumford and Nick Burchett told PA they had bailed out to avoid holding a stake in a delisted company.

Mr Mumford also said it was “disgraceful” that Bonmarche’s board had done a U-turn with regard to Spectre’s offer this week, recommending the takeover after previously rebuffing it.

He said the debacle was down to “sheer incompetent management”.

“They’ve caved in and they’ve said there’s no alternative,” he said “They’ve just sort of thrown in the towel. We’re heartily fed up of that and unfortunately decided to move on.”

Fears for the future of Bonmarche emerged earlier this week as it updated the market on its trading performance and recommended Mr Day’s takeover.