French Connection extends sale process as buyers circle
French Connection has extended the deadline by which it could be sold by three months as it continues talks with a number of interested parties.
The business announced last October that it was in discussions with four parties following a review. It has now said the date by which it could be sold has been extended to 17 September.
“Discussions have progressed since then and are ongoing with a number of interested parties. As a result, the Board has extended the period for completing the Strategic Review and Formal Sale Process,” the company said in a statement.
The company's founder, who remains its chairman and CEO, Stephen Marks holds a 42% stake in the business while Mike Ashley's Sports Direct has built up a stake worth 27%.
French Connection had been loss-making for a number of years however in March it announced it had finally returned to underlying profitability after seven years of losses having made an underlying operating profit of £0.1m in the 12 months to 31 January 2019.
The £0.1m profit, however, excluded profit/loss on store disposals and closures, provisions for bad debts and onerous leases and other professional fees; when these were taken into account, the business reported an operating loss of £9.3m. Total group revenue edged up 0.2% to £135.3m.
