Cavendish Asset Management, which is Bonmarché’s third-largest investor with a 10.8% stake, said it was “disgusted” with the board’s decision to row back on its opposition to the offer.

Bonmarché initially rejected Day’s bid, tabled through his Dubai-based Spectre Holdings, less than two months ago.

At the time, the embattled chain’s board insisted the offer “materially undervalues Bonmarché and its prospects”.

But yesterday it said poor trading during its first quarter, which it put down to “continued weakness in the underlying clothing market” and a “lack of seasonal weather”, had made Day’s bid look “more attractive”.