8th Oct 2018 09:19
LONDON (Alliance News) - Shares in French Connection Group PLC rose by a third on Monday after the clothing retailer confirmed potential sale of the company.
Shares were up 27% at 54.50 pence each in morning trade, valuing the company at GBP41.7 million. Earlier that stock had hit a high of 62.0p.
"The board confirms it is currently reviewing all strategic options in order to deliver maximum value for its shareholders, which includes the potential sale of the company," the struggling retailer said in a statement responding to weekend press reports.
French Connection, however, added that there can be no certainty over an offer, nor as to the terms of any offer. Sports Direct International PLC holds a 27% stake in the loss-making fashion chain.
In September, French Connection recorded a widened loss in the first half of its 2019 financial year on the back of store closures and a "tough" retail trading environment in the UK.
For the six months to the end of July, the pretax loss widened to GBP15.1 million from GBP5.9 million the year prior. This was after revenue slipped to GBP58.1 million from GBP59.5 million a year before.
French Connection in April agreed to sell its 75% stake Toast lifestyle brand for GBP23.3 million to Bestseller United AS, raising GBP13.9 million for the company.
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