UK retailer French Connection confirms potential sale amid speculation

9 October 2018 (Last Updated October 9th, 2018 10:15)

British fashion retailer French Connection Group has confirmed that it is currently reviewing options that could include a potential sale.

UK retailer French Connection confirms potential sale amid speculation
French Connection Group has confirmed that it is currently reviewing options that could include a potential sale. Credit: Andrew Meredith.

British fashion retailer French Connection Group has confirmed that it is currently reviewing options that could include a potential sale.

The announcement follows reports by several sources noting that its founder Stephen Marks is looking for potential buyers to sell his 42% stake.

According to the company, it is currently reviewing all strategic options to deliver maximum value for its shareholders.

In a statement, the company said: “Following this announcement, the company is now considered to be in an ‘offer period’ as defined in the code, and the dealing disclosure requirements listed below will apply.

“Following this announcement, the company is now considered to be in an ‘offer period’ as defined in the code, and the dealing disclosure requirements listed below will apply.”

“The Board has appointed Numis Securities as financial adviser. In accordance with Rule 2.9 of the Code, French Connection confirms that, as at the date of this announcement, it has 96,373,934 ordinary shares of 1p each in issue and admitted to trading on the London Stock Exchange.”

The company also noted that 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.

French Connection Group produces and retails fashion clothing for men and women with operations in London, New York, Paris, Düsseldorf, Hong Kong and Toronto.

The company currently operates retail stores and concessions as well as ecommerce businesses in the UK, Europe, US and Canada. It also offers its products through other retailers in more than 50 countries globally.

French Connection reported group revenue of £58.1m was down 2.4% for the first half ending 31 July 2108, compared to the group revenue of £59.5m during the same period last year.