UK retailers fare differently abroad

Monday, 05 October 2009
Two of the biggest fashion names on the British high street are encountering different reactions abroad.

On the same day that Aurora, which operates Karen Millen and Oasis, said trading in France was “spectacular”, French Connection announced it was to close all of its 21 stores in Japan as it attempts to stem its losses.

Derek Lovelock, chairman of Aurora, said trading everywhere was encouraging, but especially so in Europe, where “Germany is beginning to look strong and we have had a positive response in Spain”. But French Connection, which took full control of its Japanese business less than 15 months ago, said it would quit the country at a cost of £2.5m in cash and write-offs and up to 200 jobs as its losses continued to widen. The company lost £1.7m in Japan in the six months to August, and has forecast a full-year loss of £2.5m.

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