Retailer Monsoon said its chairman had ended talks over buying the rest of the company.
The British fashion chain said today that chairman and majority shareholder Peter Simon was no longer interested in proceeding with a possible offer for the 24.6 per cent of the group he does not already own.
The company also warned its annual results would be hit by tough trading conditions, sending its shares down. Monsoon shares fell 9.6 per cent at 354-3/4 pence by 9am, valuing the group at around £621 million.
The stock fell as low as 347p, its lowest since last July when Mr Simon first announced he might make an offer.
The group, which specialises in ethnically inspired clothing designs and also runs the Accessorize chain, said like-for-like sales in the last 10 weeks had fallen 4 per cent.