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Tag: laura ashley

  • Laura Ashley rolls out new stores in Japan

    Laura Ashley rolls out new stores in Japan

    British lifestyle brand Laura Ashley has revealed an expansion plan in Japan with seven new outlets scheduled to open during the first three months of this year.

    New Laura Ashley Japan stores will include those in Tokyu Department Store Sapporo, Tobu Department Store Ikebukuro, Odakyu Department Store Machida and Keikyu Department Store.

    “We will deliver products that beautifully and richly colour your “home” and “living”, including original textiles that are naturally inspired,” the company said in a statement, translated from Japanese. “We will introduce more various items such as women’s wear and home miscellaneous goods.”

    The British retailer entered Japan after trading house Itochu acquired the master license rights. The brand was then sold to The World Group under a sublicense agreement. Besides Laura Ashley, The World Group is also managing other house goods and interiors brands, such as 212 Kitchen Store, One’s Terrance, and Timeless Comfort.

    Laura Ashley was one of the world’s first high-profile retailers to collapse due to the Covid-19 pandemic last year.

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  • Laura Ashley’s UK business collapses

    Laura Ashley’s UK business collapses

    Laura Ashley’s UK business has been placed into administration after realizing that even if it could secure funds from a third-party investor it would be too late to save the business.

    the Malaysian-controlled retailer of clothing and homewares was in negotiations with Hillco Capital in a bid to secure a £15 million emergency loan.

    In a statement reported by Retail Gazette, Laura Ashley said its “revised cash flow forecasts and increased uncertainty” mean it would not be able to secure those funds in sufficient time. The coronavirus, it said, “had an immediate and significant impact on trading, and ongoing developments indicate that this will be a sustained national situation”.

    Laura Ashley’s UK business employs 2700 staff across the UK where it operates 150 stores. The immediate consequences for Asian stores is not yet clear.

    Amy Higginbotham, a retail analyst at GlobalData, said while the company was blaming poor recent trading in part on the coronavirus outbreak, the retailer has been struggling for a while.

    “The brand has long been tired and has struggled to regain relevance in both its fashion and home divisions. Financially weak retailers, of which there are many, are likely to follow Laura Ashley into administration given the current crisis. Those retailing non-essential purchases that can easily be deferred will be particularly badly hit,” she said.

    All that aside, Laura Ashley’s UK business has reported a 24-per-cent increase in sales in the seven weeks to March 13.

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  • Laura Ashley may call in administrators

    Laura Ashley may call in administrators

    Malaysian-owned clothing and home furnishings retailer Laura Ashley may go into administration if it fails to secure £15 million (US$18.44 million) in loans from Hilco Capital.

    According to reporting in Retail Gazette, the firm is currently in talks with the Homebase garden center business owner for the emergency loan to avoid collapse by the end of this month. The business has said its operations have not been strongly affected by the coronavirus outbreak but has otherwise experienced a challenging year’s trading.

    The firm suffered a 166-per-cent loss in the December financial half-year, with a sales drop of 10.8 percent amidst poor market conditions and the spectre of Brexit. Last year, the business lost 60 percent of its share value.

    The firm currently operates 150 UK stores and around 2700 staff will be affected if the business fails.

  • Laura Ashley loss doubles but received a financial lifeline

    Laura Ashley loss doubles but received a financial lifeline

    Embattled Malaysian-owned fashion and lifestyle retailer Laura Ashley has reported a 166-per-cent increase in half-year loss to £4 million, citing lower sales of home furnishings and Brexit uncertainty in its key UK market.

    But on a positive side, the company has reached an agreement with its lender Wells Fargo to draw down funds necessary to continue trading as it continues to restructure.

    Group sales fell by 10.8 percent to £109.6 million. While the company blamed the closure of three stores for the decline, same-store sales were down 10.4 percent. Online sales fell by 15.5 percent.

    “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 result filing.

    “Whilst these results are disappointing, we believe that with the right focus and support, Laura Ashley has a strong future and can be successful again.

    “In the autumn of 2019, we carried out a strategic review of the business to set the future direction of the company and return Laura Ashley to the great British brand that is known and cherished around the world. This includes reconnecting with our traditional values and our strong British heritage.”

    Meanwhile, the company denied reports that it would receive investment funding from Japanese retailer Muji.

    Georgina Sreeves, an associate retail analyst at GlobalData, said that while ‘Laura Ashley’s £20 million lifelines from Wells Fargo gives the company chance of recovery, its results reveal just how much work it will have to do to secure a long term future.

    “Once a British icon, the brand has since lost its charm and notable styles,” she said.

    In an attempt to re-establish its footing in the ranks of British fashion, Laura Ashley recently partnered with British luxury brand, Barbour and launched collaborations with Urban Outfitters and Rag & Bone which Sreeves said will boost Laura Ashley’s relevance. But it needs to do more.

    “The brand should consider a revival of its vintage pieces and prints that have been lost in the attempt at modernizing its image. To garner attention, Laura Ashley should follow suit of Argos, and publicize the archives of its once-famous home decoration catalog, and create capsule collections inspired by its vintage past. To supplement its sustainability, which currently is only held up by its use of local suppliers, the brand should consider creating garments out of leftover, unwanted material, just as Laura Ashley did when the brand was founded.”

    Sreeves added that its hopes to expand in Asia to offset difficulties it is facing in the UK will likely face delays due to the impact of coronavirus on consumer spending.

  • Laura Ashley fighting to Survive

    Laura Ashley fighting to Survive

    Struggling fashion & homewares chain Laura Ashley is seeking to borrow additional funding to stay afloat in the midst of a dispute with its lender.

    The firm’s Malaysian owner MUI Group is renegotiating its access to a £20 million (US$26 million) fund put up by Wells Fargo last October. As an asset-backed loan, the amount made available to the chain by the lender has dropped along with its stock value.

    MUI has stated it needs the financing to “meet the group’s immediate funding requirements and to draw down additional amounts to meet ongoing working capital needs”.

    The firm has had a rough financial year, with figures showing a 10.8-per-cent drop in sales in the first half compared to last year’s results following a drop in consumer spending.

    “We acknowledge that recent trading conditions, in line with the overall UK retail market, have indeed been challenging,” said MUI chairman Andrew Khoo. “There is however a robust plan in place to turn the business around … The major shareholders have indicated their continued confidence in the business and are fully supportive of the management team and the execution of the transformation plan.”

    The firm will consider “all appropriate options” should talks regarding the funding break down.

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  • Laura Ashley appoints IMG as licensing partner for China

    Laura Ashley appoints IMG as licensing partner for China

    Fashion and home-furnishings retailer Laura Ashley has appointed IMG to exclusively license the brand in Mainland China, Hong Kong, and Taiwan.

    Home decor and furnishings will be the initial core focus for Laura Ashley’s entry into Mainland China with future extensions into women’s apparel, fashion accessories, and personal care – all product areas that the Laura Ashley brand has developed over the course of its history in the UK, Europe and the US.

    “We are delighted to have appointed IMG on an exclusive basis to help us develop our brand presence in China, Hong Kong, and Taiwan,” said Laura Ashley COO Sean Anglim. “We look forward to working closely with IMG to build a strong and sustainable business in these territories over the years to come.”

    “The Laura Ashley brand is loved around the world for its quintessentially English heritage and romantic floral designs,” said IMG president of licensing Bruno Maglione. “China has long been the furniture production capital of the world for export, but now with urbanization and a growing middle class, expenditure in home furnishings and decor has become an increasing priority of the Chinese consumer. This is an ideal time for a brand like Laura Ashley to enter the market with its distinctive design aesthetic.”

    Increased purchasing power in China has led to the growth of the furniture market, according to the National Bureau of Statistics – total sales of furniture manufacturing enterprises grew 10 percent year-on-year to more than US$130 billion in 2017.

  • Takeover bid lodged for struggling Laura Ashley

    Takeover bid lodged for struggling Laura Ashley

    US investment company Flacks is considering making a bid for Malaysian-owned, British fashion retailer Laura Ashley. The firm is in the “very preliminary stages” of a takeover bid for the brand. Any possible takeover offer will be limited to 2.748p in cash per share, resulting in an overall valuation for the retailer at around £20 million (US$26.38 million), according to an announcement by the firm confirming the details.

    If Flacks buys Laura Ashley, it is expected to primarily focus on the US market and other non-European markets.

    “As far as I am concerned, there is no takeover bid because there has been no approach whatsoever,” Laura Ashley chairman Andrew Khoo told investors on Monday, a day prior to Flacks’ announcement. “If and when an approach is made, the board will discharge its duties as always and assess it on its relative merits.

    “I would, however, like to state for the record that as major shareholders of Laura Ashley, we have no intention of divesting our controlling stake,” he continued. “Whilst I understand why potential parties would think we are significantly undervalued, I have complete confidence that we will be able to grow profitably and in a sustainable manner so as to create long-term value for our shareholders.”

    A recent report issued by the firm warned that its full-year profits would “fall short of market expectations” following announced plans to close around 30 of its remaining 120 stores to control costs in the firm’s competitive and sluggish market. The firm filed a £1.5 million ($1.98 million) loss in the final half of last year.

    Laura Ashley’s Australian business collapsed late last year, but in December Khoo said he believed the brand’s future lied in Asia, where he was planning expansion.

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  • Asia becomes Laura Ashley’s last hope

    Asia becomes Laura Ashley’s last hope

    Fashion and home furnishings brand Laura Ashley will close 40 stores in the UK as it prepares to expand into the Chinese market. The firm has already gone through a round of 40 closures since 2015 against flagging interest from British consumers, which has seen a reported 14 shops closing every day in the territory.

    Laura Ashley runs a regional office in Singapore focused purely on e-commerce into China, with plans to look at physical stores rollout after establishing a significant foothold in digital retail there.

    According to Khoo, the company is “moving to Asia in a much bigger way”.

    The brand is wholly owned by Malayan United Industries (MUI), which is currently restructuring parts of its business and rationalising assets. The brand will be expanding the 120 British Laura Ashley stores that remain following the closures to better showcase the brand.

    MUI’s executive chairman Andrew Khoo Boo Yeow said: “It doesn’t really matter if [customers] buy online or offline, we just want them to get inspired … It’s a challenging environment and it could become more challenging”.

    In Australia, the remaining 16 Laura Ashley stores will close this month after the company failed to find a buyer for the business, which was run under a licence. It was placed in administration for the second time in two years on December 3.

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  • Laura Ashley sales and profit decline, announces sale of Singapore

    Laura Ashley sales and profit decline, announces sale of Singapore

    Malaysian-headquartered apparel and homewares retailer Laura Ashley is selling its commercial property in Singapore against declining sales – but it remains positive about its regional prospects.

    The firm’s full year results announced a fall in profits from £8.4 million (US$10.8 million) last year to £5.6 million ($7.2 million) this year. Total sales for the group also declined to £257.2 million ($332 million) compared to £277 million ($357 million) in 2017. Conversely, online sales increased to make up 25 per cent of total retail revenue.

    Company chairman Tan Sri Dr Khoo Kay Peng said: “As set out at the time of the interim results, the trading environment for the first half of the year was challenging and the board expected these difficult trading conditions to continue into the second half of the year. This proved to be the case and, given the softer trading environment for the year ended June 30, 2018, we are disappointed to report a fall in profits.”

    The company’s Singapore properties will be purchased by SB Investment for a cash consideration of SGD54.5 million (US$39 million), conditional on shareholder approval.

    Peng commented: “Although the proposed sale has led to an impairment charge for the group, on completion of the disposal, group net debt will be significantly reduced and cash flow will be strengthened.”

    Despite the sale, expansion into the Asian market continues to be Laura Ashley’s strategy for the region.

  • Laura Ashley to expand to China

    Laura Ashley to expand to China

    After several attempts at cracking the market, Laura Ashley will finally launch in China.

    The British retailer, owned by Malaysia-based MUI Group, will open a website via the Alibaba-owned Tmall website and will have a concession within the first House of Fraser store in China set to open this autumn.

    Laura Ashley finance director Seán Anglim said its long-term aim was to find a Chinese franchise partner.

    “China is not easy as evidenced by how many have got in and how many have come out,” Anglim said.

    “It is all about finding the right partner and doing it at the right time.”

    Laura Ashley currently has franchise partners in 30 countries outside the UK and an online store in six.

    The company also has ambitions to establish new online stores in Hungary and the Czech Republic in coming months.

    The Chinese move comes after the retailer this week reported a £25.8 million profit before tax and exceptional items for the 74 week period to June 30 – a 12.6 per cent increase on the 2015 figure.

     

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