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French Connection urged to ditch FCUK logo

An investor in French Connection is calling for the retailer to lose its FCUK logo, as it cheapens the brand.

FCUK Projection 18.2 Marble Arch  i

US fund Gatemore Capital Management, which has an 8% stake in the firm, has urged the business to ditch the logo, accelerate its programme of store closures, reduce its product range and refocus on consumers aged 25-35. 

In the letter, managing partner Liad Meid said: “The company’s recent operating performance, including as set out in the 2016 annual report, is disappointing. While the board may be tempted to blame this performance on the difficult trading environment, a look at French Connection’s peers tells a different story.

“Over the past eight years, comparable listed companies Ted Baker and SuperGroup achieved phenomenal sales growth in the past year despite the onslaught of competition from the ’fast fashion’ sector, including Zara, H&M and Topshop. Other high street retailers, such as Reiss, have also experienced tremendous growth during this period. French Connection, on the other hand, has underperformed.”

Meid also asked Stephen Marks to split his roles as chairman and chief executive and called for the replacement of non-executive directors Dean Murray and Claire Kent.

French Connection made a pre-tax loss of £3.5 for the year to January 31 2015, its latest financial update, up from £1.6m the year before.

 

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