Takeover target Godfreys has warned of soft trading over the past few weeks, which would have caused it to technically breach a covenant, it has already received a waiver from, in a lending agreement with the 99-year-old major shareholder who launched a cash bid for the company two weeks ago.

Godfreys said in a statement to the ASX on Monday that "trading conditions have remained subdued", which meant it would come in at the lower end of a previously forecast profit range for 2017-18.