French Connection, the struggling fashion retailer, has officially released the details of its takeover by MIP Holdings, its second-largest shareholder. The scheme of arrangement outlines the transfer of ownership to MIP, which is a newly formed entity owned by Apinder Singh Ghura, Amarjit Singh Grewal, and KJR Brothers Limited. Under the scheme, MIP will acquire all the ordinary share capital of French Connection that is not currently owned by Apinder Singh Ghura, who had purchased a 25% stake when Frasers Group sold its shares in the company.

The scheme document provides comprehensive information on the terms and conditions of the acquisition, along with a letter from the chairman of French Connection, an explanatory statement, and a timetable of upcoming events. The board of directors at French Connection have unanimously recommended that shareholders vote in favor of the acquisition, and it is expected that founder Stephen Marks, the company’s largest shareholder, will also support the takeover.

If approved by shareholders, this takeover will mark the end of a challenging period for French Connection. The brand enjoyed significant success after going public in 1995 but has struggled in recent years, culminating in a sharp decline in performance exacerbated by the COVID-19 pandemic. The company’s revenue plummeted by over 40% to £71.5 million in the year leading up to January.

Despite these challenges, there has been a slight improvement in the share price, which currently stands at 29p. However, French Connection still faces a lengthy path to recovery. The company has already closed several stores and continues to work diligently to regain its position in the market. The decision to pursue a takeover was made after French Connection announced its availability for sale, with founder Stephen Marks recognizing the necessity for a new direction for the company.

For more information on the scheme of arrangement for French Connection’s takeover, please refer to the official documents [link 1] released by the company. Additionally, you can access further details on French Connection’s recent struggles and the challenges faced by the fashion retail industry in this insightful article [link 2].