Dubai-based retail entrepreneur Philip Day has bought 52.4% of the shares in Wakefield-based fashion firm Bonmarché from a subsidiary of private equity group Sun Capital at 11.445p a share, a discount of 36% to the previous day’s close.

The acquisition of the stake has triggered a mandatory offer for the rest of Bonmarché’s shares.

Bonmarché’s share price fell 23% to around 13.8p on the developments. The firm’s shares have fallen by more than 80% in the past year

Day made his fortune with Edinburgh Woollen Mill.

“The group notes that Spectre Holdings Limited, an entity wholly-owned by Mr. Philip Day, has today announced a mandatory cash offer to acquire the entire issued and to be issued share capital of the group not already owned by Spectre, at a price of 11.445 pence per Bonmarche ordinary share, in accordance with Rule 9 of the City Code on Takeovers and Mergers …” said Bonmarché.

“The mandatory offer follows Spectre’s acquisition of a 52.4 per cent interest in the group’s ordinary shares.

“The directors are considering the terms of the mandatory offer and in the meantime, Bonmarche shareholders are advised to take no action in relation to the mandatory offer.

“Further announcements will be made as and when appropriate.”

Spectre said its offer “values the entire issued and to be issued share capital of Bonmarché (not taking into account the exercise of any outstanding options which may have vested) at approximately £5.7 million.”

Spectre said it would take Bonmarché private and that it “expects a material reduction in headcount across Bonmarché.”