// French Connections says it is launching a formal sales process
// It had received 2 approaches, but one of them had dropped out.
// The takeover approaches come more than a year after French Connection called off plans to find a buyer last year
French Connection has said it is launching a formal sale process after receiving takeover interest, but told investors a suitor from last month will not make an offer.
In early February, the fashion retailer said it had received two approaches – one from Gordon Brothers International and Spotlight Brands, and another from Go Global Retail – over a potential takeover.
However, its shares slipped three per cent to 26p after it announced today that Gordon Brothers and Spotlight would not place a bid.
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The embattled fashion retailer said it was still in preliminary talks with Go Global.
It told shareholders it was also in initial discussion with another three parties – which have not been named – regarding a sale.
French Connection stressed that the talks may not necessarily result in a takeover offer.
Last month, Mike Ashley’s Frasers Group sold its stake in French Connection after interest from the investment groups buoyed its share price.
The fashion retailer was founded by Stephen Marks in 1972 but has seen sales impacted by the turmoil in retail in recent years, with the impact of the Covid-19 pandemic exacerbating its woes.
In December, French Connection said it had seen “encouraging” sales after some stores were able to reopen before the latest national lockdown came into force in January.
The takeover approaches come more than a year after French Connection called off plans to find a buyer following a year-long search.
with PA Wires