French Connection confirms that company could be sold
Following press speculation over the weekend that French Connection founder Stephen Marks is preparing to sell his stake in the fashion retailer, the company has issued a statement saying that it is reviewing all options to deliver maximum value for its shareholders, which includes the potential sale of the business.
Marks established French Connection in 1972. The company also used to own the Toast fashion and homewares brand but this was sold earlier this year for £23.3 million to Bestseller.
In a statement issued to the Stock Exchange today, the company said: “There can be no certainty that an offer will be made for the company, nor as to the terms on which any offer will be made.
“Following this announcement, the company is now considered to be in an “offer period” as defined in the code, and the dealing disclosure requirements listed below will apply.”
French Connection’s board has appointed Numis Securities as financial adviser.
Last month the retailer announced that its losses had more than doubled in the six months to 31 July as it struggled against difficult trading conditions. The company made a £15.1 million pre-tax loss compared to a loss of £5.9 million in the same period in the prior year although it also said that it was on track to make a return to profit.
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