French Connection ceases search for buyer amid ‘strategic review’
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French Connection has announced it is no longer searching for a buyer for the fashion brand, amid a strategic review.
According to Drapers, French Connection will “refocus” on its turnaround which includes the “right sizing” of its store portfolio.
The news follows just four months after the fashion retailer said it foresaw a sale by the end of the year, but failed to secure a buyer. Last October, the brand first reported that it was “reviewing all strategic” options for the “potential sale of the company”.
In its latest results, French Connection reported a reduction in its pre-tax losses for the six month period to 31 July 2019. Pre-tax losses were at £4.7m during the period, compared with losses of £15.1m for the same period last year.
However, group revenue decreased by 12.2% to £51m, as the retailer continued to reduce its store portfolio and saw a shift in timing of wholesale shipments into the second half of the year.
During the period, the retailer closed seven ‘non-contributing stores’ and two outlets closed during the half, with only one new store opening in central London.
