French Connection has confirmed reports, which surfaced over the weekend, that it has appointed advisers to explore options including a potential sale of the business, sending its shares soaring today.
Founder, chairman and CEO Stephen Marks owns a 42% stake in the 50-year-old firm, and is looking to potentially offload it and step back from the business.
French Connection confirmed to the Stock Market that it had appointed Numis Securities to review “all strategic options in order to deliver maximum value for its shareholders, which includes the potential sale of the Company”.
The company stressed that it cannot be sure this exercise would lead to a sale or the terms under which any offer might be made. As per Stock Market rules, the business is now officially considered to be in an “offer period”. The news sent is shares soaring and they closed up 27% at 54.5p this evening (8 October).
One person like to be influential in its future is Sports Direct’s Mike Ashley who owns a 27% stake in the chain. See our earlier story here for more information.