THE RETAIL BULLETIN - The home of retail news
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
RETAIL INSIGHTS
RETAIL SOLUTIONS
Future of Retail Marketing 2020
Omnichannel Transformations 2020
The HR Summit 2020
The Future Of AI in Retail Conference 2020
Omnichannel Futures Conference 2021
The Omnichannel Journey
Optimizing Workforce Management
ABOUT
CONTACT
SUBSCRIBE FOR FREE
French Connection seeks new funding

Fashion retailer French Connection has warned that it could run out of cash in the next few months if it is unable to secure new funding… View Article

FASHION

French Connection seeks new funding

Fashion retailer French Connection has warned that it could run out of cash in the next few months if it is unable to secure new funding or if sales do not pick up.

In statement, the company said it had accessed the government’s covid-19 pandemic job retention scheme and had obtained rates relief for its stores but had been unable to secure any other government funds due to tight qualification constraints.

The company is now in “active discussions” with several potential funding partners and said it remains confident that it will raise sufficient funds to support the business until trading improves. However, it added: “Without securing additional funding and should the current covid impacted trading levels continue, the company’s cash resources will eventually be eroded in the coming months.”

Following the closure of its UK stores in March due to the pandemic, French Connection has increased its online sales in the UK and US by 44% in the last six weeks. The company has also continued to supply a few online wholesale customers who are still trading throughout the crisis.

In addition, it is working to conserve cash and reduce costs while it develops plans for the re-opening its stores once lockdown restrictions are eased.

The company said: “We are planning to open up in an orderly manner to ensure everything required is in place. We look forward to returning to more normal levels of trade as the situation evolves, although we do not expect this for some time to come.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News