Some worries for French Connection!
Britain’s Financial Reporting Council, better known as FRC, has launched a probe into a recent audit of UK fashion retailer French Connection by accountants Mazars.
The decision follows French Connection’s recent announcement of agreeing a £29 million takeover by one of its biggest shareholders.
Also Read: UK-based French Connection sold in deal valuing at £29 million
The FRC has, reportedly, said that it is looking at French Connection’s accounts for the year that ended 31 January 2020. The decision to probe into the audit was taken back in July.
French Connection said it had negotiated an agreement with Apinder Singh Ghura, who already owns about 25.4 per cent of the business and is its second largest shareholder.
Notably, the sale follows years of losses at French Connection, which were further compounded by the menace caused by the pandemic.
Mazars took over auditing for the retailer for the year to January 2020, which is the subject of the FRC investigation, after replacing KPMG that had been handling French Connections’ audit since 1994.
Meanwhile Mazars has said that it is fully co-operating with FRC.
French Connection was founded in 1972 and includes brands like Great Plains, Toast and YMC. The retailer recorded a £7.3 million pre-tax loss in its last annual results.
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