French Connection to Close About 17 Underperforming U.S. Stores

French Connection to Close About 17 Underperforming U.S. Stores
March 16, 2010

British fashion retailer French Connection plans to sell its Nicole Farhi brand and close most of its underperforming U.S. stores as part of a strategic review, according to Reuters. French Connection said it was selling Nicole Farhi to U.S.-based private-equity firm OpenGate Capital for up to 5 million pounds, and also shuttering around 17 U.S. stores at a cost of about 6.5 million pounds, cutting its U.S. retail presence to about six remaining stores. The company, which already exited businesses in Japan and Northern Europe during the year, intends to focus on its French Connection, Toast and Great Plains brands. "The strategic review is now complete," said Stephen Marks, chairman and CEO of French Connection. "We have had to make some tough decisions, but our exit from the Japanese market, the reduction of our U.S. retail presence and the sale of Nicole Farhi, together with a reduction in our overhead base, leaves us with a continuing business that we expect will be both profitable and cash generative even in the current difficult economic environment."