French Connection is reportedly in talks to sell its flagship store on London’s Oxford Street to US sportswear giant Under Armour.
French Connection was hoping to offload the building for £10m, but has slashed that to £5m to expedite a sale, sources told The Telegraph.
It would mark a turning point for Under Armour in the UK – currently, it only trades from concessions here.
One property source told Drapers Under Armour is currently looking for one flagship in London and is not interested in further locations in the UK at this stage.
French Connection has been closing a number of loss-making stores in the UK and now has just 39, down from 58 two years ago.
Last week, French Connection shareholders Gatemore, OTK Holding and Zoar Invest wrote to French Connection chairman and chief executive Stephen Marks to demand that non-executive directors Dean Murray and Claire Kent leave the board after overseeing a “tremendous decline in value of the company”.
It came after Gatemore expressed fears in an open letter to Marks last August, urging the business to accelerate store closures, reduce its product range and ditch its “FCUK” logo.
Marks is thought to have replied to the investors’ more recent letter to indicate that the two directors will soon step down.