Laura Ashley to close 35 stores in Europe

Clothes maker and retailer Laura Ashley is to raise £9 million to pay for closing another 35 stores in Europe.

Clothes maker and retailer Laura Ashley is to raise £9 million to pay for closing another 35 stores in Europe.

The move will lead to a one-off charge of £7.7 million this year and leave the group without any stores in Germany.

The group plans raising the money through a £9 million rights issue at around 8p a share.

It is looking for franchise partners for the remaining 18 stores, all of which are profitable.

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Chief executive KC Ng said: "Whilst closing any stores is always a difficult decision, we do believe that by closing all our loss-making stores in Continental Europe and exiting Germany, this will place the Company on a firmer footing for its further development".

PA