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French Connection no longer up for sale

Written by Robert Moore Marketing Manager 2 February 2020

French Connection Up For Sale

UPDATE 2nd February 2020:

FCUK has announced that a buyer is no longer being sought. 

French Connection will now put all efforts into its turnaround strategy, focusing on sizing, its wholesale customers, investment in its online platform and other cost saving measures.

In the fashion retailers latest results (the six months to July 31 2019), it returned to sales growth after pre-tax losses narrowed. 

However a difficult trading period was reported, especially for the fourth quarter of 2019. Its full year results will be published in March 2020, with a loss before tax expected to be between £1m and £2m. 

8th October 2018:

French Connection have confirmed they are up for sale.

Advisors to chairman and chief executive, Stephen Marks, have approached prospective bidders for his 42% shareholding.

A statement was released by the struggling retailer themselves, in response to press speculation over the weekend. They announced that they are ''currently reviewing all strategic options in order to deliver maximum value for its shareholders, which includes the potential sale of the company''.  There is no certainty that offers will be made, nor any certainty regarding the terms for which any offer will be made.

Numis Securities have been appointed as the financial adviser.

Only last month, the fashion chain reported a loss of £15 million in the first half and announced plans to close eight stores this year.  For the last five years, losses have been made. They have also faced criticism from their 'fcuk fashion', 'fcuk advertising' campaigns. Last year, two new independent directors were appointed after investors demanded top-level changes.

27% of the company is held by Mike Ashley of Sports Direct group and most recently House of Fraser.

Will a buyer be found? Could this be the end for FCUK?

Categories: Retail

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