After speculation, French Connection has confirmed that it may be up for sale.
The struggling fashion retailer released a statement on Monday saying it is:
“Currently reviewing all strategic options in order to deliver maximum value for its shareholders, which includes the potential sale of the company”.
The group’s chief executive and chairman, Stephen Mark, is looking to offload the 42 percent he owns.
Mike Ashley, owner of Sports Direct (LON: SPD) and House of Fraser, has a 27 percent stake in the group, close to the 30 percent amount at which it is possible to launch a takeover bid.
Founded by Marks in 1972, the retailer has made losses over the past five years and come under pressure from investors to relinquish control of the business.
The group’s pre-tax loss increased to £5.3 million in 2016 compared with £3.5 million in 2015.
French Connection has almost 400 stores in 50 countries around the world, with 130 stores in the UK.
Shares in the group jumped by over 30 percent to 56p in early trading.
The company market value of £41 million.
The retailer owns brands including YMC and Great Plains. Last month the group reported losses and store closures, despite selling the brand Toast.
In a bid to revive the brand, French Connection launched its FCUK T-shirt slogan from 1997 back in 2016. The campaign created so much advertising that the UK’s Advertising Standards Authority requested to see all the company’s poster campaigns in advance.
French Connection has blamed tough trading conditions for the poor results. The group is not the only retailer to suffer amid the high street conditions, many groups have announced store closure and House of Fraser was recently purchased by Mike Ashley after it collapsed.
Shares in the group (LON: FCCN) are currently trading up 27.04 percent at 54,50 (0913GMT).