• US and European private equity firms are reportedly mulling offers for the retailer
  • French Connection has sought advice from investment firm Moelis
  • Founder Stephen Marks has a 41% stake in the business

French Connection is being considered by several overseas investors and private equity firms for a possible sale.

The struggling fashion retailer is being eyed by private equity firms in the US and Europe among growing speculation that founder Stephen Marks may consider a sale.

French Connection reported pre-tax losses of £7.9m in its half-year results last month.

According to The Telegraph, US private equity firm Neuberger Berman is thought to be one of the interested parties in the retailer, while Rutland Partners has previously mulled an approach for the business.

However, there are currently no active discussions for a prospective sale of the retailer.

French Connection has been seeking advice from investment firm Moelis after five consecutive years of falling sales.

According to one source Marks, who owns a 41% stake in the retailer, has price expectations nearly three times the business’ current market value of £32m, although another source said that it was highly undervalued.

Potential interest from international buyers in the retailer comes after activist firm Gatemore, which owns an 8% stake in the business, has advocated for a change in management following the retailer’s latest results.

French Connection and Moelis both declined to comment.