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Foreign investors said to be courting French Connection

By Angela Gonzalez-Rodriguez

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French Connection’s founder Stephen Marks is reportedly considering a sale. Marks may be open to selling the business following the advice from independent investment bank Moelis after receiving a number of approaches to buy the business.

As reported by ‘The Sunday Times’, among those believed to be interested in acquiring the struggling British fashion retailer s US firm Neuberger Berman, which recently acquired Marquee Brands, owner of Ben Sherman and Bruno Magli.

Sources close to the matter cited by the dominical paper also point out to European and US private equity business.

It’s worth recalling that British private equity firm Rutland Partners had previously run the rule over French Connection earlier this year when its share price stood at around 40 pence. A source at the time was quoted as saying that any deal over 40p per share would be difficult to justify given the recent performance of the business.

The fashion company might have had to follow the recommendations of activist investor Gatemore Capital, which has been nothing but putting Marks against the ropes since the beginning of the year.

Gatemore Capital Management which has built up an 8 percent stake in the business and has been trying to exert pressure on Marks, who still owns a 41 percent stake in the business he founded in 1972, to sell it.

In September, the British fashion retailer posted a pre-tax loss of 9.7 million pounds in the six months to 31 July on sales down from 75.8 million pounds to 69.2 million pounds. It has been in loss for five consecutive years, highlight market sources.

French Connection and Moelis did not wish to comment, reported ‘City A.M.’

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