French Connection founder Stephen Marks could sell 42 per cent stake, company confirms
The founder of French Connection is looking to sell, 46 years after creating the fashion brand, the company has confirmed.
Stephen Marks is looking to offload his 42 per cent shareholding and has started approaching potential buyers.
The company said it is “currently reviewing all strategic options in order to deliver maximum value for its shareholders, which includes the potential sale of the company.”
However, it stressed that no offer has been made.
The board has appointed investment bank Numis Securities as its financial adviser.
The move has fuelled speculation that Mike Ashley’s Sports Direct may launch a bid for the company.
Ashley, who bought House of Fraser from administration in August, increased his stake in French Connection to 27 per cent last year.
If he bought just three more per cent of the store, Ashley would be required to launch a formal takeover bid.
Gatemore Capital, an activist investor which sold its eight per cent stake to Sports Direct, last year called on Marks to hold an “open and transparent process to sell the company.”
Sky News, which first reported the story, said advisers at Numis have approached private equity firms and other fashion retailers.
French Connection said last month it expects to return to profitability by year-end, despite falling revenues.
The company sold its brand Toast in April, giving proceeds of £11.7m.