The board of shoe and apparel retailer Colorado Group has appealed to investors to throw out a A$430m (US$327.25m) bid from Hong Kong-based Affinity Equity Partners.

Chairman Bill Gibson said in a letter to shareholders: "Directors unanimously recommend that Colorado shareholders reject this inadequate and highly conditional offer."

The bid, the letter said, had a "fundamental flaw" - a condition relating to the company's first-half 2006/07 earnings that cannot be fulfilled.

The company's board said it would elaborate on its statement when it reports its targets in mid-August.

Colorado recently made Mel Sutton its new chief executive and appointed Charlotte Riley as general manager at Diana Ferrari, Amanda Shelton as general manager at JAG and Peter King as general manager, group marketing.