Mazars Probed Over Its Audit of French Connection Group
(Bloomberg) -- The U.K.’s auditing watchdog has started an investigation into Mazars’ audit of French Connection Group Plc.
The Financial Reporting Council said Wednesday the probe would focus on the year ending Jan. 31, 2020 without disclosing further details. The struggling U.K. fashion retailer has failed to keep pace on price with its high street rivals and has been closing stores. In April the company said revenue slumped 40% in the year ending Jan. 31.
French Connection appointed Mazars as its auditor in 2019 after a competitive tender process.
“Mazars is cooperating fully with the regulator and, respecting client confidentiality and due process, will provide no further comment during the course of the investigation,” a spokesperson said in an emailed statement.
French Connection earlier this week said it accepted a 29 million-pound ($39.3 million) takeover approach from a group of bidders that includes the company’s second-largest shareholder. Directors of the retailer unanimously recommended the 30-pence-a-share offer from a consortium, which includes Apinder Singh Ghura, Amarjit Singh Grewal and KJR Brothers Ltd.
French Connection Chief Executive Stephen Marks remains the chain’s largest shareholder and has approved for the takeover.
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