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.
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.
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