French Connection leaps on bid rumours

Shares in French Connection jumped 15% on Monday amid reports that private-equity firms are considering bids for the struggling fashion chain.

It’s known for its gritty ad campaigns and chunky knitwear, but the City has been less impressed by French Connection.

The City welcomed talk that 70-year-old founder Stephen Marks, who retains a 41% stake, may consider a sale.

Potential buyers are thought to include US firm Neuberger Berman, which owns Ben Sherman, and Piccadilly-based Rutland Partners, which recently sold turkeys brand Bernard Matthews.

Activist firm Gatemore, which owns 8% of French Connection, has been pushing for a change of management, and wrote an open letter warning: “There is a critical point the company fails to acknowledge: it simply maintains too broad a range.”

French Connection posted a 8.7% fall in sales to £69 million in the six months to August.

The shares increased by 5p to 37.8p.