FALLING SALES PUSH LAURA ASHLEY DEEP INTO THE RED

LAURA ASHLEY dived into the red as sales fell at the end of last year.

It made losses of £1.5m in the six months to December 31 having made profits of £4.3m in the same period a year earlier.

Sales fell from £134.7m to £122.9m. In the fashion division they climbed 11.8pc but furniture sales dropped by 14.4pc, while decorating was down 13.5pc. The chain, which had 156 UK stores at the end of last year, will cut around 40 more sites.

It comes after Andrew Khoo succeeded his father Khoo Kay Peng as chairman of Laura Ashley’s owner last year, with a fresh vision for the brand which includes expansion in China and developing the hospitality segment of the business. New Laura Ashley tea rooms and hotels are likely to open this year.

‘In our drive for international growth, we are committed to preserve the inspirational and distinctive identity of the much-loved Laura Ashley brand’ he said.

‘Having eliminated all our longterm debts, we are better placed to deal with the current headwinds.’