French Connection’s founder set to sell his stake
THE British founder of French Connection is preparing to sell his stake in the fashion retailer as part of a deal that could lead to it being taken over.
City sources said Stephen Marks, chairman and chief executive of the chain, has asked advisers at Numis to find a buyer for his 42 per cent stake.
Marks, 72, set up French Connection in 1969. He grew it into one of Britain’s most successful fashion brands and it became best known for its Fcuk marketing slogan.
More recently it has struggled amid fierce competition and the group announced a £15 million loss in the first half of the year. Potential suitors could include Mike Ashley’s Sports Direct International, the recent buyer of House of Fraser – which has built up a 27pc shareholding in French Connection.
Sky News first reported that Numis has already offered Marks’ stake to private equity firms, which would likely trigger a bid for the whole business if they acquired his shares.
In March, French Connection said it had received a takeover approach from a mystery US company last year.
A spokesman for French Connection declined to comment.
Meanwhile, hedge funds lost as much as £65 million in one day on Friday after shock news of a possible bid for the shopping centre operator Intu.
The shares jumped 27 per cent after billionaire investor John Whittaker confirmed his interest, taking the firm’s value to £2.6 billion. Analysis of the hedge fund stakes is based on data from BNP Paribas.
So-called ‘short sellers’ – investors who take out contracts betting that share prices will fall – had been hoping a dramatic drop in the group’s stock price over recent months would continue.
Intu owns 17 shopping centres but has high debt and has been hit by speculation the retail sector will continue to struggle.