UK retailer French Connection receives two takeover offers

08 Feb '21

2 min read

Pic: French Connection

French Connection, the ailing UK retailer of fashion clothing, accessories and homeware, has received two takeover offers—the first from retail investor Spotlight Brands, with backing from the restructuring and investment firm Gordon Brothers, and the second from brand investment platform Go Global Retail in conjunction with HMJ International Services.

Spotlight has backed other British brands, including fitness-focused Sweaty Betty, while Gordon Brothers acquired the Laura Ashley brand last year following its administration.

“Discussions with both Spotlight and Go Global remain at a very early stage,” said French Connection, which unsuccessfully sought to find a buyer in 2019, in a statement to investors.

“Accordingly, there can be no certainty that an offer will be made, nor as to the terms on which any offer might be made. Further announcements will be made as appropriate in due course,” it said.
However, French Connection noted that any offer for its business was likely to be made in cash. The suitors have until March 5 to make a formal offer.

Last year, French Connection warned that it could run out of cash unless sales improved or it received a cash injection.

The retailer, founded in 1972, is also the owner of the Great Plains brand, owns 68 stores and concessions in the United Kingdom as well as many overseas outlets. It employs about 780.

Fibre2Fashion News Desk (DS)

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