31st Jan 2020 09:56
(Alliance News) - French Connection Group PLC on Friday said it is no longer up for sale more than a year after the retailer first put itself on the market for a buyer.
The company said it has completed a "strategic review" and will focus on cutting costs, "right sizing" its store portfolio and boosting investment in its online offering.
It was in October 2018 when French Connect first said it "reviewing all strategic options in order to deliver maximum value for its shareholders, which includes the potential sale of the company".
Turning to its trading, French Connection said it expects to trim its losses in the year to January 31, but reported "continued challenging trading conditions in the UK". French Connection said trading was particularly difficult in the fourth quarter, a period which included the pivotal Christmas trading spell.
It forecasts a pretax loss between GBP1 million and GBP2 million, narrowed from GBP9.3 million the year prior.
"UK trading in both the Retail and Wholesale businesses has been more difficult during the second half of the year, especially during the fourth quarter," French Connection said.
Shares in the company were down 33% at 22.20 pence each in London on Friday morning.
By Eric Cunha; [email protected]
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