Bonmarche is set to be taken over by billionaire Philip Day in a £5.7 million deal.

Mr Day, owner of The Edinburgh Woollen Mill Group, has acquired more than half of the company's shares, triggering a mandatory takeover bid.

Acting through holding company Spectre, the businessman bought more than 26 million shares, representing 52.4 per cent of the company.

At just 11.445p per share, the offer represents a significant discount on the company's Monday closing price of 18p and values the whole entity at just £5.7 million.

It comes after Bonmarche, which has stores across Cumbria, issued its third profit warning in just six months in March.

The womenswear retailer said it has seen significantly weaker trading since the start of the month, reversing a bounce-back in January and February after it resorted to heavy discounting to shift stock.

In a statement relating to the takeover offer, Spectre said: "Against the backdrop of the significant decline in Bonmarche's profitability, Spectre believes it is well positioned to provide advice, guidance and support to secure the long term future of the Bonmarche business, its stores and employees.

"The owner of Spectre, Philip Day, has a successful track record within the retail sector, especially in turnaround and distressed situations."

Dubai-based Mr Day, who has an estate in Brampton and financial links to Carlisle United, has been linked with several retail turnarounds.

At the weekend he was named as a bidder in the race for collapsed womenswear brand LK Bennett, though he later withdrew from the process.

Last year he was one of the potential buyers circling House of Fraser, which was eventually sold to Sports Direct owner Mike Ashley.

His other investments include Peacocks, Proquip, Austin Reed, Country Casuals, Jaeger and Jacques Vert.

Edinburgh Woollen Mill opened moved its headquarters from Langholm to Carlisle's Castle Street last November.