Tie Rack is to begin closing its 44 stores in the UK with 200 staff members at threat of losing their jobs after accounts for last year showed that it saw a pre-tax loss of £6.8m on sales of £68.1m.
Tie Rack, which was founded in 1981 by South African entrepreneur Roy Bishko, will be shutting down all of its high street stores and a handful of its outlets in airports.
A spokesman said: "Following a period of prolonged decline in Tie Rack's fortunes, it is with regret that we today announce this closing down sale. Management are working with staff to provide support during this difficult time."
Neil Saunders, managing director of retail analysts Conlumino, said: "Tie Rack did well in the 1980s consumer boom but it's very out of sync with the way people shop now. Men get their ties where they buy their shirts and there is nothing to differentiate Tie Rack, such as high quality or any brand attribute that would really put it on consumers' radar."
The neckwear specialist will be starting its closing-down sale on Wednesday, with the shops due to shut their doors for good by the end of the year.
