French Connection Group PLC Trading Update and Financial Position (2738N)
19 Mayo 2020 - 1:00AM
UK Regulatory
TIDMFCCN
RNS Number : 2738N
French Connection Group PLC
19 May 2020
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. ON PUBLICATION OF
THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION WILL BE CONSIDERED TO BE IN THE PUBLIC DOMAIN.
French Connection Group plc
("French Connection" or the "Company")
Trading Update and Financial Position
As announced in our last update on 24 March, our stores and
concessions continue to be closed, however we have been able to
continue to operate our own websites in both the UK and USA with
sales up 44% over the last 6 weeks, while continuing to supply a
few of the predominantly online wholesale customers who are still
trading, although this all makes up a small proportion of the
overall business. In addition we are starting to see a small
increase in activity in Europe as countries begin to open up.
The Company has taken a number of actions to conserve cash and
reduce costs given the significant reduction in sales, together
with the delayed payments from many of our wholesale customers,
particularly in the USA. The Company is in ongoing and generally
constructive discussions with many of our key stakeholders
including:
-- all suppliers to confirm extending payment terms and discounts
-- landlords with a view to agreeing rent holidays or deferred payments
-- factories to manage the supply of future goods to match
current requirements while reducing quantities to reflect the
expected lower level of trade for the remainder of the year
-- rescheduling payments to HMRC
We have attempted to participate in as many of the Government's
support initiatives as is possible. The Job Retention Scheme for
colleagues and rates relief for the store portfolio are now in
place. It has however proved very challenging for us, in line with
other retailers, to access any other Government funds due to the
tight qualification constraints that have been imposed and to date
we have been unable to access any further funding from these
schemes.
In the light of the Company's current cash position and the
continued expected weak trading environment, we have been in active
discussions with a number of potential funding partners. The Board
is confident of raising sufficient funds to support the business
until the return of trading levels that are able to support the
ongoing operations. This process is proceeding well and we are
making good progress on due diligence and agreeing terms. Without
securing additional funding and should the current Covid impacted
trading levels continue, the Company's cash resources will
eventually be eroded in the coming months.
We have been developing plans for when the stores re-open to
ensure they do so safely and in line with all Government guidance,
so that our customers and colleagues will be able to shop and work
confidently in a safe and healthy environment. Given the UK
Government's recent update regarding the potential phased reopening
of stores from 1 June, we are planning to open up in an orderly
manner to ensure everything required is in place. We look forward
to returning to more normal levels of trade as the situation
evolves, although we do not expect this for some time to come.
Further announcements will be made as appropriate.
Enquiries:
French Connection Group plc
Neil Williams, Chief Operating Officer +44 (0) 20 7036 7206
WH Ireland (Sole Broker & Financial Adviser)
Adam Pollock (Corporate Broking)
Adrian Hadden / James Sinclair-Ford / Chris Savidge
(Corporate Finance) +44 (0) 20 7220 1666
Paternoster Communications
Tom Buchanan
Catriona Woolner-Winders +44 (0) 20 3012 0241
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END
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May 19, 2020 02:00 ET (06:00 GMT)
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