French Connection sold in £29m deal
French Connection has been sold to a consortium including its second-largest shareholder in a deal valuing the fashion chain at £29million.
The struggling business said it has accepted a 30p per share offer from Apinder Singh Ghura, who already owns around 25.4 per cent of the group, as well as Amarjit Singh Grewal and KJR Brothers.
Founder Stephen Marks, who has been looking to sell his 42 per cent stake for years, will retire from his role as chairman once the sale is completed, the company said. The 75-year-old, who set up the business in 1972, is set to take home around £12million from the deal.
French Connection – which has 150 stores and concessions globally – began seeking new buyers in March this year as it struggled to recover from the effects of the COVID-19 pandemic that saw revenue fall by 40% in its last financial yea
Marks said: “Over the last five years, French Connection has made significant progress in its plans to rationalise the size of its store portfolio and to return the French Connection Group to profitability.
“It was always our intention to look at the most appropriate ownership structure for the business once it was back on track, and, having conducted a formal sale process, the French Connection board has concluded that the offer being made by MIP is fair and reasonable.”
He added: “When the transaction closes, I will retire from French Connection. This is an appropriate time for me to step back from the business that I founded in 1972, and I would like to take this opportunity to thank all our people for their contribution to our achievements over the years. I wish them all every success in the future.”
