French Connection has confirmed it is considering the potential sale of the business as it is currently “reviewing all strategic options”.
In a statement to the London Stock Exchange on Monday (8 October) the fashion retailer set out its position following reports over the weekend, and also added that there is no certainty any offer will be made.
It said: “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. There can be no certainty that an offer will be made for the company, nor as to the terms on which any offer will be made.”
French Connection founder Stephen Marks currently holds a 42% stake in the business as well as the dual-role of both chairman and chief executive. Sports Direct and House of Fraser owner Mike Ashley also has a 27% stake in French Connection.
In September the fashion retailer blamed the decline of House of Fraser and poor high street footfall on store closures, as it posted a £15m loss in the six months leading up to July 2018 as like-for-like sales dropped by 7%.
Shares in the company, which had a market value of £41m ahead of the market open, rose by almost 45% in early trading.