‘Unprofitable’ French Connection Store in Regent to Suffer from Closures

Posted on 30 November, 2015 by Chris Grigorovsky

Despite a share surge due to winter trading, renowned fashion retailer, French Connection, is to close three of its stores in the UK and four in the US in January as the brand’s closure programme pushes forward.

Unprofitable French Connection Store in Regent to Suffer from Closures

According to the Guardian, one of its biggest stores, based in Regent Street, is one of the many unprofitable branches that is suffering from closures. In March, the building’s owner requested the closure and now French Connection will receive £2.4m in compensation from the landlord. A redevelopment of the site is expected.

French Connection said in a trading update that the move would eradicate the continuous trading losses of the store. This year, the company’s shares halved and in the first half of the year, it lost £7.9 million.

Back in April, it was expected by the company that seven shops would close, however it is now 13 sites that are facing it this year.

All is not bleak however, as founder and chief executive of French Connection, Stephen Marks said that performance seemed to have improved, with the winter collection selling well and sales in existing stores increasing slightly in the 16 weeks to 21 November.

Mr. Marks continued: “The performance of the group has improved considerably compared to the first half of the year, particularly in the UK and Europe retail stores.

“While we still have the all-important Christmas period to come, we expect results for the full year to be in line with market expectations.”

Analysts at Numis Securities also seemed positive towards French Connection, saying that performance was “encouraging”. Predictions are of a full-year pre-tax loss of £4.5m compared to a loss of £800,000 in 2014.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions

Covid-19 Causes Millions To Claim UK Furlough Scheme

America, Amazon Wants You!

UK Firms Battle To Survive

COVID-19 Grounds EasyJet Fleet

ECB Emergency Fight Back Aganist Covid-19

Aldi’s Expansion Plan

British Steel on the verge of collapse with over 20,000 jobs at risk

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market