The chief executive and chairman of French Connection has signalled that two non-executive directors will be stepping down from the board following pressure from activist investors, The Telegraph has reported.
American fund Gatemore, joined by OTK Holding and Zoar Invest, wrote to Stephen Marks last week to demand that non-executive directors Dean Murray and Claire Kent leave the board after overseeing a “tremendous decline in value of the company”.
City AM reported that Marks wrote to the investors, which own 15% of the company, to indicate that the two will soon step down.
Liad Meidar, managing partner and chief investment officer at Gatemore, told the newspaper the letter was “thin in terms of content”.
The three investors also called for Marks to split his dual role of chairman and chief executive. He founded the company in 1972 and owns a 42% stake in the business.