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French Connection buys out Japanese partner

French Connection has bought out Renown, its Japanese partner, and taken 100% control of French Connection Japan.

French Connection has taken back the 50% stake in its Japanese business, which includes 21 standalone stores.

The consideration for the transaction was satisfied by the waiver of a £1.98 million loan due to Renown from French Connection plus a cash payment of around £240,000.

At the year ended December 31, French Connection Japan had gross assets of approximately £4.62m and sales of around £8.9m. The company made a loss of around £1.4m for the year. Within those figures French Connection Japan paid around £700,000 in license royalties and buying office commission to French Connection.

French Connection said it would now be directly involved in the day to day running of the Japanese business. It said it planned to move it into profitability within three years.

French Connection chairman and chief executive Stephen Marks said: "I believe Asia is a very important market and presents a great opportunity for French Connection. This move consolidates our position in one of the most important markets of the region."

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