Founder of French Connection Stephen Marks is exploring a potential sale of the business.
Advisers at investment bank Numis Securities have been approaching potential buyers for Marks’ 42% share in the company, Sky News first reported.
In a statement French Connection said: “The board confirms it is currently reviewing all strategic options in order to deliver maximum value for its shareholders, which includes the potential sale of the company.
“There can be no certainty that an offer will be made for the company, nor as to the terms on which any offer will be made.”
Private equity firms and other fashion retailers are thought to be interested in the business. Mike Ashley owns around 27% of the business, but it is not known if he intends to bid for Marks’ share.
Group revenue at French Connection fell by 2.4% to £58.1m in the six months to 31 July, which the retailer blamed on a reduced store portfolio and ‘tough retail trading’.
Like-for-like sales across the UK and Europe slipped by 7% but wholesale revenue was up by 6.2%. Underlying operating loss before tax was reduced to £5.5m, compared to £5.9m the previous year.
Marks said the business was on target to return to profit before the end of the year.