StockMarketWire.com - Womens' fashion retailer Bonmarche slumped as the company warned on profits and said it was willing to accept the 11.445p a share takeover offer from Spectre just a two months after urging shareholders to reject the deal.

The company said it now deemed the takeover offer fair and reasonable following given the uncertain retail backdrop.

'Bonmarché is now of the view that the terms of the Offer are fair and reasonable. The Board, therefore, recommends that shareholders accept the offer, as they intend to do so in respect of their own beneficial holdings,' the company said.

The u-turn from retailer comes as it warned on profits amid a poor first quarter, during which continued weakness in the underlying clothing market, and a lack of seasonal weather to counteract it, particularly in June, weighed on performance.

'It is early in the financial year, and the achievement of a PBT result which is in line with the Board's expectations is possible, but there is a significant degree of uncertainty attached to this, and risks are more heavily weighted towards the downside,' the company said.

'The Group's cashflow forecasts indicate that due to the implementation of its cost reduction programme, which has lowered the annual cost base by approximately £6.0m, and the cessation of all but unavoidable capital expenditure, it has adequate liquidity provided its bank continues to support it by way of its £5.0m overdraft and other facilities,' the company added.


At 9:29am: [LON:BON] Bonmarche Holdings share price was -3.5p at 12p



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