French Connection, the struggling retailer, has confirmed that it has received multiple takeover approaches. The company, which has been facing a decline in share prices, sales, and profits in recent years, is now considering the possibility of a sale. The early bids have come from Spotlight Brands in partnership with Gordon Brothers International, as well as Go Global Retail in collaboration with HMJ International.

It is important to note that these approaches do not guarantee a concrete bid, but French Connection is currently engaged in talks with both potential buyers. No specific offer has been made yet, and the terms of any potential offer are uncertain, although it is likely to be in cash.

According to stock exchange regulations, the interested bidders have until March 5 to make a firm intention to acquire the company or withdraw their interest. The value of a potential offer is difficult to estimate at this stage. After the takeover approaches were announced, French Connection’s market capitalization stood at just over £20 million, with the share price experiencing a rise due to bid speculation. It is worth noting that the share price had reached around £5 in March 2004 but had since declined significantly to less than 6p last autumn. Currently, the shares are trading above 20p each.

Despite the company’s mounting problems in recent years, French Connection’s directors have been hesitant to sell. However, the challenges posed by the ongoing pandemic have intensified the pressure on the retailer. Like many other businesses, French Connection is now exploring its options in light of the long-lasting effects of the pandemic, which will likely continue to impact companies even after widespread vaccination in the UK.

Useful links:
1. Official French Connection Website
2. Retail Gazette – Latest Retail News