Laura Ashley, a British heritage brand that is now controlled by the MUI Group of Malaysia, is not immune to the struggles of retail especially in recent times.
The fashion and furnishing retailer has suffered a 166 per cent increase in losses, mounting to UK £4 million amidst uncertainty surrounding Brexit.
The losses are for a period of 6 months ending 31 December 2019; however, the company has found a way to prevent itself from going under by securing sufficient funding to stay afloat.
US bank Wells Fargo and the company have agreed over the terms for a UK £ 20 million loan.
The report of increasing losses sent the company’s stock plummeting with a 10.8 per cent decrease to UK £109.6 million.
“The decline in total revenue was due to the market headwinds and weaker consumer spending during the period, which led to a decline in sales of bigger ticket items,” the company said in a results filing.
Some areas, where the company lost revenue, include online sales that plummeted 15.5 per cent, closure of 3 stores as well as decline in same-store sales as opposed to earlier.
Although Laura Ashley is attempting to reinvent and reinforce its image in the market by recently partnering with the likes of British luxury brand, Barbour and launching collaborations with Urban Outfitters and Rag & Bone, a call back to its heritage is important.