French Connection holds talks with interested parties regarding sale of business
French Connection has revealed that it has commenced preliminary discussions regarding a potential sale of the business with four interested parties.
The company has also said that it has held conversations with several other parties regarding its plans.
Following speculation that its founder Stephen Marks was preparing to sell his stake in the business, French Connection issued a statement earlier this month saying that it was reviewing all options to achieve the best value for its shareholders, which included the potential sale of the business. Marks founded French Connection in 1972.
In September the company announced it had made a pre-tax loss of £15.1 million in the six months to 31 July. This compares to a loss of £5.9 million in the corresponding period in the previous year. The retailer also said it was in track to make a return to profit following changes made to the business over the last two years.
French Connection has now agreed with the Takeover Panel that any discussions in relation to an offer for the company may take place within the context of a formal sale process to enable conversations with parties interested in making such a proposal to take place on a confidential basis.
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