Laura Ashley has revealed a loss of £4 million in its interim results for 2019, as the retailer seeks to turn around its finances with a £20 million loan from Wells Fargo.

The furnishings and fashion retailer’s interim report for the 26 weeks to 31 December showed losses were up compared to 2018, which saw a £1.5 million pre-tax shortfall, while total like-for-like retail sales were down 10.4 per cent.

Total retail sales for the period were £106.5 million, while e-commerce sales were down 15.5 per cent to £22.2 million.

The company said there had been market challenges, including weaker consumer spending, which had impacted the results and led to a decline in sales of bigger ticket items.

It already plans to close 155 UK stores, following continued profit warnings during 2019.

Recently, pressure has mounted due to a fall in stock levels after Christmas, which reduced the ability to offer assets in exchange for secured loans.

A statement to the London Stock Exchange said: “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.”

The company confirmed that it had secured a deal to secure its immediate funding requirements following press speculation last weekend over talks with the US bank Wells Fargo to help it bolster its ability to withstand tough trading conditions.

Andrew Khoo, chairman of Laura Ashley Group, said: “Over the past year there have been well documented market challenges facing the retail sector, similarly at Laura Ashley, we have seen a combination of factors impact our results, ranging from higher costs largely driven by the Brexit uncertainty, minimum wages and business rates increases.

“We have embarked on this transformational phase of our journey and we are confident we have the right leadership team and building blocks in place,” he continued.We are excited about revitalising this distinctive and much-loved brand and to unlock its true potential," he concluded.

Share Story: