French Connection fashion retailer sold for €25m

Fashion retailer has accepted a £29m for the high street chain.

Mon, 04 Oct, 2021 - 15:11

Deirdre Hipwell

French Connection has accepted a £29m (€24.7m) takeover approach from a group of bidders that includes the struggling UK fashion retailer’s second-largest shareholder.

Directors of the retailer unanimously recommended the 30-pence-a-share offer from a consortium, which includes Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers, the retailer, once best known for its FCUK logo, said.

French Connection kicked off a formal sales process in March. Chief executive Stephen Marks has had a difficult few years trying to turn around the business, founded in 1972. The retailer, which also owns the Great Plains and You Must Create brands, has been closing stores and in April said that revenue had slumped 40% last year.

Singh Ghura, who has worked in the clothing industry for many years but also has investments in property and care homes, already owns just over 25% of the company.

Grocery market

Meanwhile, shares in British supermarket group Sainsbury's rose 4.5% on hopes SoftBank's Fortress Investment, which lost out in the auction for rival Morrisons, may turn its attention to an even bigger player in UK grocery.

Fortress was defeated in the weekend shootout for Morrisons, Britain's No. 4 supermarket group. However, managing partner Joshua Pack signalled Fortress remained interested in UK assets.

A spokesperson for Fortress declined to comment on Sainsbury's, which trails only market leader Tesco in UK grocery sales.