Cumbria retail tycoon Philip Day is set to take over under pressure womenswear fashion chain Bonmarché following a U-turn by its board.

In an update to shareholders published London Stock Exchange, the Bonmarché board said the offer from Spectre Holdings Limited – the Dubai-registered company owned entirely by Mr Day – was “fair and reasonable” and recommended that it was accepted.

The board has previously advised shareholders to dig in and resist mandatory takeover bid by Mr Day, triggered after he bought more than 26 million shares at 11.445 pence per share, representing 52.4 per cent of the struggling firm, in April.

And while it admitted to still having reservation’s about Mr Day’s valuation and long-term plans for the business, poor trading in the first quarter along with its ongoing efforts to cut costs, made the Edinburgh Woollen Mill Group boss’s bid “potentially more attractive in the short term”.

In the letter, the board said it was uncertain trade will pick up with the current clothing market not following the patterns of previous years, and while the medium and long-term prospects for the business were good, it had reversed its previous recommendation.

“Whilst the board's view remains that the offer does not adequately reflect the potential longer term value of the business, the increase in uncertainty that has developed reflecting the trading and financial position of the business during the first quarter of the financial year makes the certainty represented by the offer potentially more attractive in the short term,” it said.

“As a result, the board of Bonmarché, which has been so advised by Investec as to the financial terms of the offer, 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 board continues to welcome the opportunity to engage with Mr Day, who has, as yet, not taken up the offer to discuss future plans for the business, and believes that, with his sector experience, he would be a successful long-term owner.”

The shift by the Bonmarché board looks set to end a month-long stalemate with Mr Day, who last month said he was leaving his offer on the table while the retailer grappled with a cost-cutting plan, which has so far amounted to £6m.

Bonmarché has 300 stores across the UK, including outlets in Carlisle, Barrow and Workington.

The ball is now in Mr Day’s court, with his offer remaining “open until further notice”.

Mr Day has a long legacy of turning around struggling retailers, adding the likes of Peacocks, Proquip, Austin Reed, Country Casuals, Jaeger and Jacques Vert to his growing Edinburgh Woollen Mill Group empire.

Spectre Holdings Ltd remains separate from the group, for which Mr Day – who has an estate in Brampton and financial links to Carlisle United – is best known. He was recently named the eighth richest person in the North West with a fortune of £1.2 billion in The Sunday Times Rich List.