Shares in up-for-sale French Connection soar

THE founder of French Connection could be about to sell off his shares in the fashion chain.

Stephen Marks, who launched the fashion empire in 1972, is said to be looking to offload his 42% share of the luxury brand.

It’s sparked speculation that the billionaire Mike Ashley – the man behind House of Fraser’s revival – could be its next owner. The serial entrepreneur currently has the second-largest share in French Connection at 27%, not far off the 30% needed to launch a takeover bid.

French Connection currently has an outlet in the Cardiff branch of House of Fraser.

In a statement, French Connection said it was “reviewing all strategic options in order to deliver maximum value for its shareholders, which includes the potential sale of the company” over the weekend.

Following this news, shares jumped on yesterday morning by more than 30%, giving the company a market value of £52m.

Talks of a potential sale come after French Connection reported a £15m loss in the first half of 2018 following five previous loss-making years.

It has left boss Marks under further pressure to sell up as the shift to online shopping intensifies.

Just last month, the group outlined proposals to close eight stores over the full financial year, having already shut two in the first half.

It said at the time that the “continued deterioration of trading conditions on the UK high street” meant it was reviewing leases on a number of other loss-making stores.

French Connection shot to fame in the 1990s on the back of a hugely successful celebrity-endorsed FCUK campaign – that left it worth a reported £500m. The controversial logo returned in 2016 but didn’t take off, with the revival unable to reboot profit numbers.