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French Connection approached by two takeover suitors

By Huw Hughes

5 Feb 2021

Business

British fashion retailer French Connection has confirmed it is in talks with several potential suitors.

The company confirmed in a statement Friday that it has received one approach from Spotlight Brands in conjunction with Gordon Brothers International, and another from Go Global Retail in conjunction with HMJ International.

The company noted that the talks remain at a “very early stage” and so “there can be no certainty that an offer will be made, nor as to the terms on which any offer might be made (although any offer is likely to be in cash).”

French Connection in takeover talks

The potential suitors now have a deadline of 5pm on 5 March to announce either a firm intention to make an offer for the company.

Shares in the retailer increased on Friday morning to 28p, giving the company a market capitalisation of around 27 million pounds.

The high street retailer has been struggling in recent years against a backdrop of increasingly-online competition.

For the six months to 31 July, French Connection reported a 53.1 percent dive in group revenue to 23.9 million pounds.

Retail revenue declined by 57.6 percent to 10.1 million pounds with both UK/Europe and North America sales significantly impacted by Covid-19 store lockdowns.

Photo credit: French Connection, Facebook