Bossini International Holdings' controlling shareholder, Law Ka-sing, quit as chairman yesterday.
The company said in a statement to the stock exchange last night Mr Law, 59, was retiring, adding that he 'had no disagreement with the board and there is no matter relating to his resignation that needs to be brought to the attention of the shareholders'.
Bossini shares surged more than 50 per cent to 49.5 HK cents at the end of last month amid reports that Mr Law was in the process of selling his 68.97 per cent stake to a mystery buyer, which could have triggered a mandatory takeover offer.
However, a day later, the stock plunged when the retail chain best known for its cheap T-shirts and shorts announced that Mr Law's negotiations with the potential investor had ended.
The fact that the deal fell apart within three days puzzled analysts, who drew the regulators' attention to the case. The Securities and Futures Commission refused to comment on the possible takeover or Mr Law's resignation.