×
60 554
Fashion Jobs
MIZZEN+MAIN
Account Executive - Specialty ne & Midwest
Permanent · DALLAS
COTY
Area Sales Manager
Permanent · Miami
LEVI'S
Part-Time Sales Supervisor
Permanent · Katy
SALLY BEAUTY HOLDINGS LLC
Outside Sales Representative -Cosmoprof
Permanent · Colorado Springs
SALLY BEAUTY HOLDINGS LLC
2nd Shift Inventory Control Specialist
Permanent · Jacksonville
NORDSTROM
Asset Protection - Agent - North Point Marketcenter Rack
Permanent · Alpharetta
NORDSTROM
Asset Protection - Agent - The Outlet Collection Rack
Permanent · Auburn
NORDSTROM
Asset Protection - Security Ambassador - Galleria at Roseville
Permanent · Roseville
LULULEMON
Assistant Manager, Operations | Cherry Creek Mall (1 Year Contract)
Permanent · Denver
LULULEMON
Assistant Manager, Operations | Bellevue Square
Permanent · Bellevue
LULULEMON
Assistant Manager, Operations (Hyde Park)
Permanent · Chicago
OLD NAVY
Assistant Manager, Customer Operations - Airport Square
Permanent · North Wales
OLD NAVY
Assistant Manager, Customer Operations - Monroe Mktplace
Permanent · Selinsgrove
OLD NAVY
Asset Protection Coordinator - Florida West
Permanent · Estero
OLD NAVY
Assistant General Manager, Merchandising - Jefferson Mall
Permanent · Louisville
OLD NAVY
Assistant General Manager, Merchandising - Willowbrook-Houston
Permanent · Houston
OLD NAVY
Assistant Manager, Customer Operations - Oshkosh
Permanent · Oshkosh
OLD NAVY
General Manager - Ridgewood Court
Permanent · Jackson
OLD NAVY
General Manager - Monroe Marketplace
Permanent · Selinsgrove
OLD NAVY
Asset Protection Coordinator - Portland
Permanent · Beaverton
OLD NAVY
General Manager - Tikahtnu Commons
Permanent · Anchorage
OLD NAVY
General Manager - Watertown
Permanent · Watertown
Published
Jul 28, 2017
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Sports Direct now owns over a quarter of French Connection

Published
Jul 28, 2017

Sports Direct now owns 27% of beleaguered fashion retailer French Connection with the stake making it the second largest shareholder in the firm.


French Connection



If it acquires just 3% more of the shares, UK corporate rules mean it must launch a takeover offer for the company, although the big blocker if that happened could be founder and CEO/chairman Stephen marks. He still holds around a 42% stake.

Sports Direct snapped up its latest chunk of shares in recent days as London hedge fund Gatemore Capital Management sold its 8% stake and OTK Holding sold its 7%. Those two activist investors have been pushing heavily for a management change at the firm and appear to have thrown in the towel as management resisted such calls.

While they have been unhappy at the retailer’s declining performance and Marks’ determination to continue in his combined chief executive and chairman roles, Gatemore did at least make a 44% profit on its holding in the company.

But Gatemore managing partner Liad Meidar didn’t exit without a final criticism, insisting that the retailer “could have unlocked significantly more value had it made more progress in fixing its corporate governance.” Meidar added that it “remains a glaring example of the shortcoming of the UK corporate governance code, namely, that companies can get away with such violations with zero repercussions to the people at the top.”

That doesn’t seem to have bothered Sports Direct boss Mike Ashley though. This year the firm has been steadily building its French Connection holdings after the initial revelation six months ago that it already had a more-than-11% stake in the troubled business.

But will it want to launch a full takeover offer? While the company remains on the lookout for acquisitions, it has always played down talk of takeover interest in French Connection.

Mike Ashley has frequently bought stakes in other retailers at bargain prices without planning to take full control with recent investments including Game Digital and Findel.

Neither he nor French Connection have commented on his latest buy so it’s unclear whether Stephen Marks is feeling happy about or threatened by his stake-building. Reports say the two have met in recent months but there's no news on what they might have said to each other.

And of course, if Marks can build a working relationship with Ashley - as two slightly maverick CEOs together - he could end up being given a slightly easier ride than of late. If nothing else, he has got two investors who were very vocal in their complaints out of his hair.

Copyright © 2022 FashionNetwork.com All rights reserved.