Cumbrian tycoon Philip Day is leaving his offer of £5.73 million to acquire Bonmarche on the table while the board of the womenswear fashion retailer grapples with a costing-cutting plan.

In a statement to the London Stock Exchange, Spectre Holdings Ltd – the Dubai-registered company owned entirely by Mr Day – said it would step back and keep a watching brief as the Bonmarche board looks to revive the company’s after a series of profit warnings.

Last month, Mr Day – owner of the Edinburgh Woollen Mill Group and listed among the richest people in the North West – bought more than 26 million shares, representing 52.4 per cent of the struggling firm.

The move triggered a mandatory takeover bid, which the Bonmarche board dismissed as undervaluing the company, urging other shareholders to dig in.

Amidst the stalemate, Spectre said its offer for the remainder of the company would remain on the table until “further notice”, adding: “At this point in time, Spectre does not believe these plans will deliver value for Bonmarché shareholders in the medium term.

“Spectre will now take a step back and see if the Bonmarché board can deliver on the plans and strategy it has set out.”

However, Spectre cast doubt on whether the cost-cutting plan set out would work.

“Spectre notes the cost saving strategy set out by the Bonmarché board, which conveniently followed Spectre's views,” the statement continued.

“Spectre will monitor this carefully and the performance of the Bonmarche business. Unfortunately, Spectre does not believe the cost saving plan announced by the Bonmarche board will be sufficient to return Bonmarche to profitability.”

Bonmarche – which has more than 300 stores across the UK, including three in Cumbria – has suffered three profit warnings in a row against the backdrop of a stormy period on the high street.

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.

Last week, Mr Day was been named the eighth richest person in the North West with a fortune of £1.2 billion in The Sunday Times Rich List.

The placing follows a busy 12 months for the secretive tycoon, who oversaw the opening of Edinburgh Woollen Mill’s new headquarters in Carlisle.