Make-up tycoons lose £35m in High St slump

WARPAINT LONDON’S founders are nursing losses of more than £35m after the cosmetics company became the latest victim of the crisis engulfing the High Street.

The firm, whose brands W7, Technic and Man’Stuff are stocked in stores such as H&M, TK Maxx, Boots and Superdrug, said retailers are putting in smaller Christmas orders as shoppers stay away.

It said strong growth overseas would not be enough to offset a softer market in Britain, meaning profits will come in between £8.5m and £10m, down from an estimate of £12m. Shares fell 45.1pc, or 92.5p, to 112.5p. The rout cut the value of the 25pc stakes held by founders and joint chief executives Samuel Bazini and Eoin Macleod by nearly £18m each, costing them a total of more than £35m.

Chancellor Philip Hammond said ‘our high streets have to change’ amid an onslaught from online rivals. The UK accounted for 44pc of group sales in the first half, making it a crucial market for Warpaint, which also makes own-label products for Asda and Matalan.

However, there was better news from abroad as sales in the US were up 60pc as of September 30.