If a challenge is refused then the declining player must retire one character nominated by his opponent. The retiring character is removed from the engaged rank and placed at the back of the formation. The retired character may not fight or do anything else that turn. The unit may not use his Leadership for any tests during the same turn either, noone Likes a coward! The (so called) Hero has chosen to hide away behind his fellows rather than face the challenger one-on-one. The retired character is automatically returned to a fighting rank at the end of that Close Combat phase ready to fight in the following turn. He is positioned in the same place as before.