Sports Direct buys 11 per cent share in French Connection
Sports Direct has bought an 11 per cent of French Connection, a stake that would allow the company to disrupt any buy-out bid for the ailing high street retailer.
The move comes at a time of flux for the company, which has been hit by losses for five years. Activist investors have been pushing non-executives off the board and have called for better corporate governance at the company.
Read more: A major French Connection investor has sold its entire stake
Yesterday, it emerged that French Connection's second-largest shareholder, Schroders, has sold its 9.27 per cent stake in the company. There have also been reports that sportswear brand Under Armour has been in talks over buying French Connection's flagship London store on Oxford Street.
Activist investor Gatemore has demanded that French Connection founder Stephen Marks split the roles of chairman and chief executive at the company – he currently acts as both.
Gatemore has warned that French Connection may have to sell its Oxford Street store to survive the summer, but has also called for more transparency in Marks' deal-making.