French Connection sells 5 percent stake to Dunelm Group

British high street retailer French Connection has sold a 5.16 percent stake to the son of the founder of homeware Dunelm Group, Will Adderley, for an undisclosed sum.

The acquisition, which was completed on January 7, was carried out via Adderley investment vehicle WA Capital. The sale comes not long after the British fashion retailer reported a small increase in group like for like sales for the 16 weeks to November 21, 2015, as it continues to struggle to boost sales.

French Connection Group, which consists of its fashion label as well as other brands such as Toast, Great Plains and YMC, is set to close a number of unprofitable stores by the end of this month, including three French Connection stores in the UK and four in the US. The group is also set to exit its flagship store on Regent Street in March.