Share spike as French Connection reveals talks

0 The retailer, which was founded in 1972, recently reported widening half-year losses of £15.1m

Shares in French Connection jumped yesterday following confirmation that the retailer is up for possible sale.

The company said over the weekend that it is reviewing “all strategic options in order to deliver maximum value for its shareholders”, including a potential sale.

Any deal would see founder and chief executive Stephen Marks offload his 42 per cent stake in the chain. Shares closed up 27 per cent at 54.5p.

Like much of the high street, French Connection has had

a difficult time of late and recently posted widening half-year losses following an £800,000 hit from the House of Fraser collapse.

The group reported pre-tax losses of £15.1 million for the six months to 31 July against losses of £5.9m a year earlier, following writedowns including the House of Fraser impact and store leases.

Complicating any sale is the spectre of Sports Direct boss Mike Ashley, who holds a 27 per cent stake in the chain – founded by Marks in 1972.