A major French Connection investor has sold its entire stake
French Connection's second-largest shareholder has reportedly sold its entire stake in the company.
Shroders, which owned 9.27 per cent of the French clothing retailer, sold its shares at to an unknown buyer at 33p each, the Telegraph reported.
The stake sale revived speculations of a takeover of the struggling firm, which has had almost nine years of losses. Activist investors are now calling for the company to find a buyer or completely rewrite its corporate governance.
Last week, the boss of French Connection signalled two non-executive directors would be stepping down from the board after an intervention by a group of activist investors.
Three investors wrote to French Connection's chief executive and chairman Stephen Marks to demand non-executive directors Dean Murray and Claire Kent leave the board after presiding over "a tremendous decline in value of the company".
Read more: French Connection boss signals two non-executive directors will step down