Shareholders demand French Connection ‘should be broken up’ after another annual loss
Last year the company saw a loss of £5.3million
FRENCH CONNECTION should be broken up, the fashion brand’s shareholders said yesterday after another annual loss.
It sunk £5.3million into the red in 2016, after 2015’s loss of £3.5million.
The firm, famed for its FCUK slogan in the 1990s, has already closed two stores this year with six more set to go.
Sales also fell 6.7 per cent year on year as it struggles against rivals such as ASOS and ZARA — and major shareholder GATEMORE now wants action.
Gatemore’s Liad Meidar called French Connection’s board “a mockery of modern corporate governance”.
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And he called for its chief exec and chairman, founder Stephen Marks, to ditch at least one of the roles.
Mr Meidar said the business should be broken up and that it could be worth up to £100million.
But SPORTS DIRECT boss Mike Ashley has just bought an 11 per cent stake and will have a big say.
In 2004 French Connection’s share price was almost 500p. At close last night it was just 35p.
Ocado in go slow
OCADO warned that food price rises are kicking in as its order sizes slowed again.
They averaged £110.84 in the 13 weeks to February 26, down 1.6 per cent year on year, the online supermarket said.
The drop in late November was 2.7 per cent.
The weak Pound after last June’s Brexit vote is pushing up import prices.
Ocado’s Tim Steiner said: “While the market remains very competitive, there are the first signs of change in market pricing dynamics.”
Ocado has still not struck any deal with a big international retailer, but says it is “confident on the issue”.