British fashion brand, French Connection, has agreed to sell its business for $40 million after suffering from years of losses that were made even worse by the pandemic.
The struggling brand is being acquired by apparel entrepreneurs Apinder Singh Ghura and Amarjit Singh Grewal, along with holding company KJR Brothers Ltd.
Ghura is a longtime supplier to the U.K. apparel industry and he recently acquired a 25.4 percent stake in French Connection.
The acquisition deal prices French Connections’ shares at 41 cents per unit, a 30 percent premium on the price the company revealed in its bid last month, Reuters reported.
The deal marks the start of a new chapter for French Connection, which has made a name for itself for its provocative “FCUK” branding. The company began seeking buyers after its deal with investment firms Gordon Brothers and Spotlight Brands fell through earlier this year.
Under the terms of the deal, the company’s founder, Stephen Marks, will step down from his chairman position. Marks founded the company 50 years ago and he remains the top shareholder, owning a 41.5 percent stake in the company.