Laura Ashley family cutting remaining ties

The Laura Ashley family is close to severing its links with the British clothing retailer famous for its floral-print fabric …

The Laura Ashley family is close to severing its links with the British clothing retailer famous for its floral-print fabric that it founded almost 50 years ago.

The company announced Williams de Broe had placed the family's remaining 3 per cent holding of 15.36 million shares at 32p each with a number of institutions. That followed a 39 million share placing the broker made for the family and trust two weeks ago.

"Following this transaction, the Laura Ashley family no longer has a declarable interest in the company," the company said.

The transaction lifted the shares, which closed 10.5 per cent higher at 36-3/4p, valuing the once-struggling group at £200 million sterling.

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Mr Bernard and Laura Ashley founded the company in 1953, creating fabric designs influenced by artists such as William Morris, and built it up to become a global empire that flourished in the 1970s and 80s, until apparent mismanagement and over-expansion hit profits in the 1990s.

The group's fortunes hit rock bottom when in 1998 it unveiled losses of almost £50 million. But it was rescued from bankruptcy by Malayan United Industries, which invested $74 million for a 40 per cent stake. Mr Ashley resigned as a director that same year.

In April this year, the company announced its first annual profits since 1997, with home furnishings boosting the pre-tax figure to £10.2 million, on sales of £259.1 million.