French Connection has been approached by Spotlight Brands in conjunction with Gordon Brothers International LLC and Go Global Retail in conjunction with HMJ International Services Ltd

French Connection has been approached by Spotlight Brands in conjunction with Gordon Brothers International LLC and Go Global Retail in conjunction with HMJ International Services Ltd

Shares in French Connection Group remained up by more than 70% this afternoon (5 February) after the fashion retailer confirmed it has received two separate takeover approaches.

The potential suitors are Spotlight Brands in conjunction with Gordon Brothers International LLC (Spotlight), and Go Global Retail in conjunction with HMJ International Services Ltd (Go Global).

"Discussions with both Spotlight and Go Global remain at a very early stage. Accordingly, there can be no certainty that an offer will be made, nor as to the terms on which any offer might be made," the retailer said, adding that further announcements will be made in due course and that any offer is likely to be in cash.

The struggling retailer last July secured GBP15m in funding for its operations, after warning that it was likely to run out of cash. In December it secured US$6.5m of additional funding for its US business and said trade at stores that had reopened since the second lockdown in England and Wales was "encouraging."

In its most recent results for the six months ended 31 July, French Connection said group revenue almost halved to GBP23.9m (US$31.2m) from GBP51m in the prior-year period, with underlying loss slumping to GBP12.2m from GBP3.6m in 2019.

Shares in the company were up by 71.89% at the time of writing. 

Go Global Retail is a brand investment platform that acquired women's clothing company and online retailer ModCloth from Walmart. It is led by industry veteran and sourcing expert Jeff Streader who spoke with just-style at length about how Go Global's new M&A model puts garment makers at the heart of the deal.