French Connection looking to sell business
“The Board confirms it is currently reviewing all strategic options in order to deliver maximum value for it’s shareholders, which includes the potential sale of the Company,” the UK-based retailer said in a release to investors.
The release pointed out that there can be no certainty that an offer will be made, nor as to the terms on which any offer would be made, but that following the announcement it would be considered in an “offer period”.
Numis Securities Limited has been appointed as financial adviser for the potential sale.
According to The Guardian, shares in the fashion retailer spiked 30 per cent to 56p (AU$1.04), reaching a market value of £52 million (AU$96.29 million).
In its recent report for the six months to July 2018, French Connection saw group revenue drop 2.4 per cent to £58.1 million (AU$107.59 million), leading to a half-year loss of £5.8 million (AU$10.74 million).
At the time, the retailer said it was looking to close six stores in the second half of the year, with more to be identified, but added that it was “on track to return Group to profitability for the full year”.
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