French Connection has bought back its Japanese joint venture and plans to move the business into profitability within three years.

The fashion retailer has acquired back the 50 per cent of its Japanese business it did not own already from Renown.

Renown has waived a loan due to it worth ¥420 million (£2 million) and paid French Connection ¥50 million (£238,000) for the remaining half of the business.

French Connection Japan operates 21 French Connection branded stores in the country under licence from Renown.

In the year to December 31, French Connection Japan notched up sales of ¥2 billion (£9.5 million) and a net loss of ¥324 million (£1.5 million). Gross assets were ¥977 million (£4.7 million).

Within that period French Connection Japan paid licence royalties and buying office commission to Renown of ¥163 million (£7.8 million).
French Connection chairman and chief executive Stephen Marks said “I believe Asia is a very important market and presents a great opportunity for French Connection. This move consolidates our position in one of the most important markets in the region”.