French Connection Group’s board of directors is mulling a sale of the company, it confirmed today (8 October).
The group issued a statement today in response to press speculation over the weekend saying it is “reviewing all strategic options in order to deliver maximum value for its shareholders, which includes the potential sale of the company”.
“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,” the statement adds.
According to reports in The Guardian, Sports Direct — which recently acquired UK department store House of Fraser — is a potential bidder for French Connection.
Sports Direct did not respond to request for comment at the time of press.
At the end of last month, French Connection Group reported wider losses of GBP15.1m (US$19.9m). For the same period a year earlier, losses were GBP5.9m. Revenue also fell 2.4% for the first half to GBP58.1m reflecting tough retail trading in the UK.
Group CEO Stephen Marks, however, remained optimistic the company would return to profitability this year.
“The order books we have provide a clear outlook for the second half of the year in wholesale although retail continues to be challenging. We remain on target to return the business to profitability this year and we will be doing everything we can to ensure that happens.”