Shirt-maker Austin Reed has seen losses widen in the wake of a turnaround plan that resulted in the closure of 31 stores. The company is expected to close more loss-making shops in the near future as it trims its store estate to get back into profitability.
In the year to January 31st, the 114-year-old retailer saw a £5.4 million loss, compared to a £1.3m loss the previous year, after turnover dropped by 7.8%. This was largely down to a programme of store closures in recent times, although the company has plans to stabilize the business with a £3 million cash injection from owner Darius Capital as well as an £18.2 million loan from US bank Wells Fargo.
In happier news, the group’s website now generates more revenues than its bricks and mortar business. "The web is now the biggest store and this sizeable operation is bringing new opportunities and challenges,” the company said in its accounts.
