Call to split fashion giant

BRITISH fashion retailer French Connection Group reported a loss for the fifth straight year, prompting calls from activist investor Gatemore Capital Management to split up the company. The company’s stock rose 3.9% to 36.25 pence (R5.80) on the London Stock Exchange (LSE). French Connection has closed stores and hired new management and design teams as it struggles to compete with fastfashion rivals such as ASOS Plc, Forever 21 and Inditex’s Zara. French Connection’s current position is a far cry from its heady days in 2004, when the huge success of its FCUK logo boosted the company’s shares to more than 500 pence (R8). However chief executive Stephen Marks reiterated yesterday that his commitment to turn the group profitable and said reaction to 2017 collections had been very strong. Brokerage Numis Securities said it expected the company to return to profit in the year ending January 2019. The company has been under pressure from Gatemore, which owns an 8percent stake, to improve shareholder value. Gatemore estimates French Connection to be worth £80 million to £100 million.