- Schroders sells it 9.27% stake for 33p a share
- It was second-biggest shareholder and largest institutional investor
- Retailer is under pressure from activist investors over corporate governance
French Connection’s second-biggest shareholder, Schroders, has offloaded its entire stake in the troubled fashion retailer.
Schroders, a long-standing backer of the chain, was its biggest institutional investor with a 9.27% stake.
It sold its shares at 33p each yesterday to a mystery buyer, according to filings.
The sale sparked a spike in French Connection’s share price, which rose 18.6%.
The retailer has been rocked in recent weeks by pressure from activist investors over the way the loss-making company is being run.
The investors are calling for founder and boss Stephen Marks to find a buyer or shake up its corporate governance.