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Bloomberg
French Connection Group Plc accepted a $40 million takeover approach from a group of bidders that includes the struggling UK fashion retailer’s second-largest shareholder.
Directors of the retailer unanimously recommended the
30-pence-a-share offer from a consortium, which includes Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers Ltd. The group announced the bid on September 23.
French Connection kicked off a formal sales process in March. Chief Executive Stephen Marks has had a difficult few years trying to turn around the business, founded in 1972. The retailer, which also owns the Great Plains and You Must Create brands, has been closing stores and in April said that revenue had slumped 40% in the year ending on January 31.
Singh Ghura, who has worked in the clothing industry for many years but also has investments in property and care homes, already owns just over 25% of the company.
Marks remains the chain’s largest shareholder and has given irrevocable approval for the takeover. He said French Connection has made significant progress in its plans to resize and return to profitability during the last five years.