Sports Direct ups stake in French Connection
Shirebook-based Sports Direct has upped its stake in fashion chain French Connection after buying up another 15% of the company.
Sports Direct has bought 8% of French Connection from Gatemore and 7% from OTK, meaning it now owns 27% of the company.
Mike Ashley’s firm is now close to the 30% mark it needs to launch a formal takeover bid of French Connection.
Gatemore and OTK were so-called “activist investors” who had come together to push for a change of leadership at French Connection.
The retailer has suffered five years of consecutive losses.
Liad Meidar, managing partner of Gatemore Capital Management, told The Telegraph that while his fund had made a 44pc return on its investment he believed that “French Connection could have unlocked significantly more value during the period had it made more progress in fixing its corporate governance”.
“French Connection remains a glaring example of the shortcomings of the UK Corporate Governance Code: namely, that companies can get away with such violations with zero repercussions to the people at the top,” he said.
