LOOSE CONNECTION

Fashion chain French Connection has suffered a 10% slump in shop sales as it prepares to shut more stores.

The firm is closing eight outlets this year and warned it could also dump more loss-making branches.

It came as store takings fell to £27million during the six months to July 31.

Founder Stephen Marks said a fightback plan “has not been helped by the trading conditions in which we operate”.

Half-year losses nearly tripled to £15m after the firm cut the value of store leases. It was also owed £800,000 by House of Fraser before it went bust. Including a boost from the sale of its Toast fashion business, losses were flat at £5.8m. But French Connection’s share price still crashed by 6% yesterday.

The firm hopes to grow concessions in House of Fraser now it’s been bought by tycoon Mike Ashley’s Sports Direct.

French Connection is also 27% owned by Sports Direct. Meanwhile Marks hailed the growth of its wholesale arm – where its clothes are sold by other retailers.