Fashion retailer French Connection has received two separate takeover approaches from potential suitors.
The company – which posted a £2.9m loss last year and has closed a number of shops in recent years - revealed that it has been approached regarding a takeover by retail investor Spotlight Brands, with backing from restructuring and investment firm Gordon Brothers.
Spotlight has backed British brands including fitness-focused Sweaty Betty, while Gordon Brothers acquired the Laura Ashley brand last year following its administration.
READ MORE: {}
French Connection said it has also received another potential proposal from brand investment platform Go Global Retail.
French Connection's shares rose sharply yesterday on rumours of a possible takeover.
In a statement, French Connection said: “Discussions with both Spotlight and Go Global remain at a very early stage.
“Accordingly, there can be no certainty that an offer will be made, nor as to the terms on which any offer might be made.”
French Connection's founder and chief executive Stephen Marks retains a 42% stake in the business while Mike Ashley's Frasers Group has almost 25% of the company.
Most Read
The firm's stores are currently closed due to the pandemic, but it was struggling even before the coronavirus outbreak and has closed a number of stores permanently after a string of loss-making years.
The fashion brand said it had seen “encouraging” sales after some stores were able to reopen, before the latest national lockdown came into force in January.
The takeover approaches come more than a year after French Connection called off plans to find a buyer following a year-long search.