French Connection has announced that it has received a buy-out offer of £29m by its second largest shareholders Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers Limited.
The offer comes as its share price increased by 15% to 26.9p, giving it a market value of roughly £26m.
The company, which began a formal sale process on 2 March 2021, said its indicated offer price should equate to “30 pence per share in cash” and that discussions with the consortium “remain ongoing”.
In the group’s recent trading update for the 12 months to 31 January 2021, revenues plummeted 40.4% year-on-year to £71.5m.
Underlying losses for the period also expanded to £11.7m, from £2.9m the year before, as Covid-19 caused store closures and a reduction to wholesale demand.
Stephen Marks, chairman and chief executive at the company, said at the time: “Our key focus for the year has been to navigate our way through the difficult challenges we have faced as a result of the Covid-19 pandemic.
“Trading had been broadly in line with our expectations at the time of the financing but we were then hit by the second and third national lockdowns in the UK.”