Shares in French Connection surge after it attracts suitors for a potential takeover

French Connection has revealed it has been approached by two separate groups of investors about a potential takeover, leading to the value of the fashion firm’s shares more than doubling since Wednesday.

The chain, known for its ‘FCUK’ slogan said it has received two approaches , “each of which may or may not result in an offer for the company”.

The shares were around 11p on Wednesday, and surged yesterday amid market speculation about deals.

The shares earlier today leapt 9.59p to 24.24p, valuing it at around £23 million. It was valued at more than £400 million at its peak.

One approach is from Spotlight Brands. It was formed by Los Angeles-based Strand Equity, which has backed brands such as athleisure retailer Sweaty Betty. . It is working with investment firm Gordon Brothers, which last year bought the Laura Ashley brand.

The other approach is from Go Global Retail, whose website says it invests in and builds globally relevant brands. It has offices in the US and London, and is working with a firm called HMJ International Services.

French Connection, which has had to shut shops at various points for lockdowns since the coronavirus outbreak, said discussions with both potential suitors remain at a “very early stage”.

French Connection’s largest shareholder is boss Stephen Marks, with a 42% stake, while Frasers Group, led by retail tycoon Mike Ashley, holds a 24.93% stake.

Today's update comes a year after French Connection called off plans to find a buyer following a search, and said it planned to focus on completing a turnaround.