BAD management helped push fashion chain French Connection into the
red by #8m, the company admitted yesterday.
Stock losses of #1.4m at its sportswear subsidiary Bukta contributed
to the fall. The company's pre-tax loss for the year to January 31
compared with profits the previous year of #57,000.
The results were ''entirely unsatisfactory'', said chairman George
Wardale. ''Exceptionally poor management and operational controls were
partly to blame, but the weaknesses had been recognised and steps taken
to ensure they did not recur.''
The company has sold off Salford-based Bukta and aims to concentrate
on its French Connection and Nicole Farhi businesses. In May it secured
fresh backing from its bankers.
The company sacked its chief executive Michael Shen last September,
only to pay out #20,000 damages for wrongful dismissal when Mr Shen took
the case to a tribunal. He also received an apology for allegations of
gross misconduct.
Losses per share were 40.6p, compared with earnings of 1.4p last time.
Shareholders, who received a total dividend of 2.7p previously, get
nothing this time round.
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