Retail Struggles Continue as French Connection Shuts More Stores
- French Connection announces closure of more stores due to House of Fraser decline
- Loss of £15m in six months leading up to July 2018
- Six stores to close, leaving 30 total by the end of the year
- £10m loss from bad debts and onerous leases
- Company still expects profitability this year
- CEO Stephen Marks remains optimistic about wholesale business
French Connection has announced the closure of six more stores due to the decline of House of Fraser and poor high street footfall, resulting in a £15m loss in the six months leading up to July 2018. The fashion retailer blamed the underperforming branches for its losses, with some £10m made up of provisions for onerous leases on stores it cannot close yet. Despite the challenges, CEO Stephen Marks remains optimistic about the wholesale business and expects the company to return to profitability this year.
Factuality Level: 8
Factuality Justification: The article provides accurate information about French Connection’s store closures, financial losses, and the company’s outlook for the future. It includes quotes from the CEO and mentions specific numbers and figures to support its claims.
Noise Level: 3
Noise Justification: The article provides relevant information about French Connection’s store closures and financial performance, including specific numbers and quotes from the CEO. However, it lacks in-depth analysis or exploration of broader trends or consequences for the fashion industry or retail sector.
Financial Relevance: Yes
Financial Markets Impacted: French Connection’s stock price and related retail companies
Financial Rating Justification: The article discusses the financial performance of French Connection, a fashion retailer, and its decision to close stores due to poor sales and unfavorable trading conditions. This impacts the company’s financial situation and can potentially affect the stock price as well as other retail companies in the same industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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