Shares of French Connection Group Plc (LON: FCCN) exploded 92.3% higher after the company revealed that it has received two acquisition offers from Spotlight Brands and Go Global Retail.
The fashion company that struggled throughout last year after the coronavirus pandemic led to the closure of most high street fashion stores is in the enviable position of choosing between two very qualified suitors.
Spotlight Brands is the company behind the Sweaty Betty activewear brand whose sales skyrocketed last year driven by demand for its home workout leggings as more people had to work out from home instead of the gym.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Spotlight’s bid is backed by Gordon Brothers’ funding, a US advisory, lending and investment firm that has been in business since 1903 with an established track record of investing in the retail and consumer sector.
The other interested party is Go Global Retail, a brand investment platform that invests in fashion and retail brands based on a customer-centric approach. The firm currently operates the ModCloth women’s fashion store that designs and sells women’s clothing and accessories.
French Connection has given the two firm up to 5 PM UK time today to make a formal offer for the company or back out. Investors cheered the move as seen by the spike in the company’s share price, and it will be interesting to see how everything plays out.
The fashion company would have gotten a major lifeline if one of the two suitors acquired it. Both companies have been very successful during the coronavirus pandemic and have a good chance of revamping French Connection’s operations.
French Connection share price.
French Connection shares spiked 92.31% higher to trade at 30p having risen from Thursday’s closing price of 15.6p.
