French Connection is reportedly to ditch its Tegan Fashion brand, barely 18 months after it was launched. The closure comes after French Connection has disposed of poorly performing stores and close or sell weak business units such as its Japanese business and Nicole Farhi brand.
“It was a start up business that we have taken the decision to close and will not have a material impact on the trading of the group,” a spokesperson quoted by ‘This is Money’ said earlier this week.
As broadly understood within the trade, this closure is part of an on-going turnround strategy of the group designed to stabilise profits. It’s noteworthy that London-listed French Connection has closed into the red 3 out of 5 years of trading, incurring on losses up to 10.5 million pounds in the year to January.
Tegan brand trades from its own website and operated as a separate business with its own design team, but it is thought to have become a drain on the main group’s management time and resources, reported ‘Daily Mail’.