French Connection secures $6.5m in additional funding

French Connection has announced it has secured $6.5m (£4.9m) in additional funding, as part of its latest trading update.

The UK fashion retailer said it secured the funding through the Main Street Lending Programme to support its US-based operations and staff.

The loan will be for a period of five years with repayments due from the third year, with the retailer noting that the loan will provide the working capital needed “at certain times of year to operate”.

In its latest announcement, French Connection also revealed trade had been “encouraging” at its English and Welsh stores since the end of lockdown on 2 December.

Since its half year results on 13 October, which saw its revenue drop by 53% during the first six months of the pandemic, its ecommerce channels have continued to trade positively despite adopting “a less promotional stance”, according to the group.

In a statement, French Connection said: “Looking forward there will continue to be considerable challenges, with both the ongoing impact of Covid-19 and the uncertainty relating to Brexit but we feel we are well positioned to capitalise on any opportunities that arise.”