Loss-making retailer has key meeting with banks
Article Abstract:
Laura Ashley will meet its banking consortium with a business plan in Dec 1997 after having breached its banking convenants. The company has issued profit warnings in 1997 after purchasing too much stock, expanding too rapidly in the US and suffering supply problems. Ann Iverson, appointed chief executive in 1995, has left the company, having been paid 450,000 pounds sterling, and James Walsh, the finance director, has also left, with a payment of 300,000 pounds. The company's losses are forecast at 10 million pounds sterling for 1997 by analysts.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Iverson 'outstanding' claims Laura Ashley
Article Abstract:
Laura Ashley's head, Ann Iverson, will not be paid a bonus in 1997 after a statement thatthe company is likely to break even. Laura Ashley reported a 57% profit rise for 1996, but has had to write off stock in 1997, lost three senior executives, suffered a stock price collapse, and halted a program of opening stores in the US. There were 19 stores opened in 1996 and 13 were planned for 1997. The stores are making losses and no new stores are planned for 1998.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Theory that rivalry prompted demerger
Article Abstract:
Burton will demerge its Debenhams stores and argues that this will unlock hidden value as well as allowing costs to be reduced for the multiples such as Top Shop. Some analysts see the demerger as having been triggered by directors' rivalry. NatWest Securities' John Richards argues that Burton has a problem with increasing sales rather than a structural problem, while Societe Generale's Nick Bubb does not see the demerger as needed to gain cost savings.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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