Bonmarché has said the takeover bid from Edinburgh Woollen Mill owner Philip Day “materially undervalues” the womenswear retailer.
Day’s Spectre Holdings last week acquired a 52% shareholding in Bonmarché, at 11.45p per share.
Spectre was required to make a mandatory cash offer for the rest of the shares, which valued the retailer at £5.7m.
In a message to shareholders, Bonmarché said it had been planning a number of cost reductions prior to receiving the offer last week.
The retailer’s board said it had sought to engage with Day to discuss future plans for the business.