French Connection extends sale review
Written by Peter Walker
French Connection will extend the period for the strategic review and formal sale process it announced in October.
At the time, the fashion and homewares retailer said it had commenced discussions with several interested parties and that the review was expected to conclude during the first half of 2019.
In a statement, French Connection noted that discussions have moved forward and are still ongoing, but that the deadline will be extended until its interim results on or around 17 September.
“Notwithstanding the extension of the strategic review and formal sale process, the board continues to believe that French Connection can deliver long-term growth and remains focused on building on the momentum achieved last year and driving the business forward,” the statement read.
The company also mentioned that there could be no certainty that an offer would be made for the business, although founder and chief executive Stephen Marks previously stated he was ready to sell his 42 per cent stake in the business.
In March, the company's annual report revealed that operating losses nearly tripled in 2018, but hailed a small return to operating profit in 2018 as a win amidst a “tough” retail trading environment.
Like-for-like sales were down 6.8 per cent, due to the challenging conditions on the UK High Street, while operating losses jumped from £3.8 million in 2017 to £9.3 million last year.