British apparel company French Connection could be up for sale, with the fashion chain’s founder said to be offloading his majority stake in the company, prompting a potential sale.
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“The Board of French Connection Group plc notes the press speculation over the weekend regarding the potential sale of the company [and] confirms it is currently reviewing all strategic options in order to deliver maximum value for its shareholders, which includes the potential sale of the company,” French Connection 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.”
The move would see its 72-year-old founder and CEO Stephen Marks sell his 41.6% stake in French Connection, which he founded some 50 years ago.
The company’s other major shareholder is UK chain Sports Direct, owned by Mike Ashley, with the latter acquiring 27% of the company’s shares earlier in the year.
French Connection has been facing strong headwinds in recent years.
With a changing retail landscape and failure to attract millennials, the firm has reported years of poor results, since its peak in the mid-noughties when it pushed its savvy “FCUK” logo.
The board has named Numis Securities as financial adviser in the sale process.