£37m share sale for divorce

FRENCH Connection boss Stephen Marks is to sell almost £37m worth of shares in the fashion retailer to pay for a divorce settlement with his wife Alisa, it emerged today.

Marks, who set the company up and is now its chairman and chief executive, is to sell 8m to 9m shares in the group. He sold another £1.3m worth of shares in May.

Marks isn't the first company executive to see his marriage break-up spill over into financial news.

Investors read last month how William Hill chief executive David Harding liquidated shares and options in the bookmaker for an estimated £5.3m to meet the costs of a payout to wife Lucia.

French Connection this morning moved to quell fears over Marks' sale, saying he had pledged not to sell any more stock for at least six months.

Equity will be placed with major institutions and even after completion Marks will be left with a stake of 41.9% to 42.9% of the company, valued at around £186m.

French Connection also gave a brief trading update in which it said the company's performance so far this financial year was in line with management's expectations. Analysis of the figures, however, shows that the UK retail business, which did very well this time last year, has been weak.

By contrast the group said its wholesale arm, which accounts for nearly half domestic turnover, has performed well and the North America and licensing divisions continue to show good growth.

The performance in the US comes despite controversy over its controversial 'fcuk' slogan there.

American Christian organisations started a boycott in which top stores such as Macy's and Bloomingdales temporarily withdrew the new French Connection fragrance.

The company was recently rapped in the UK by the Advertising Standards Authority after complaints about advertisements here which also featured the slogan.