French Connection £29m takeover approved by shareholders
Fashion firm French Connection’s shareholders have put their support behind a £29m takeover.
Buyer Apinder Singh Ghura – who has experience in the clothing sector as well as property and care homes – joined forces with partner Amarjit Singh Grewal, and KJR Brothers, headed by textile businessman Rafiq Patel.
The move means the retailer is now in private hands for the first time since 1983, with new owners set to take the reins on November 8.
Ghura, who bought a 25 per cent stake in the retailer from Mike Ashley’s Frasers Group in February, said he was “delighted with the strong support” shown in a shareholder vote.
“We look forward to working with French Connection’s management to execute and implement our strategic plans to facilitate the future growth and profitability for the business,” he added.
Founder and chief executive Stephen Marks, who owns just under 42 per cent of the retailer, will receive around £12m for his stake.
Like many high street stores, the brand took a hit during the pandemic as well as having not made a pre-tax profit since 2012.
In recent six-month results, the group reported it was on the road to recovery from the impact of lockdowns, despite losses.
While revenue was down 21.2 per cent, the underlying loss was stationed at £0.9m, compared with the £3.6m registered in 2019.
Last month the company’s board declared it had accepted MIP Holding’s offer to buy French Connection at 30p per share, recommending all shareholders to accept the offer.