As Aurora Fashions unveils a radical restructure, separating its Coast, Oasis and Warehouse brands, Retail Week looks at the what it means for the business.

What is Aurora’s new structure?

Occasionwear retailer Coast has been hived off and will be run as a standalone business, while Oasis and Warehouse have been grouped together under a new holding company called Fresh Channel. This follows the spin-off of former stablemate Karen Millen two years ago. The senior Aurora management team will continue to work together over the next 12 to 18 months to support the transition to the new structure at which point Aurora will cease to exist.

Why has it broken up the business?

To make the business more agile, according to chief executive Mike Shearwood. The move will mean that the management teams of the individual brands can make quicker decisions without having to consult a wider group.

Aurora chairman Derek Lovelock says the retailer’s rapidly expanding network of sales channels means it does not get the same group benefits it once did.

He says: “Less than 30% of sales come from our own shops. We don’t get the same economies of scales we did when we had lots of lorries going to lots of shops in the same towns.”

The three brands operate 1,100 stores across 40 countries, of which 262 are company owned. The womenswear retailers also sell through 40 websites, 12 wholesale websites, 708 concessions and 224 franchise stores.

How does this impact the individual retailers?

Former Oasis managing director Liz Evans, who has been appointed chief executive of the newly formed Fresh Channel, says it is focusing on omnichannel and international growth. She says: “Our international growth will be rapid, predominately through franchises. Both brands are in really good shape and performing well. We’ll continue that positive momentum.”

She says both Oasis and Warehouse share similar growth opportunities and the separation has created a greater sense of entrepreneurial spirit in the newly formed business.

Coast is understood to have different growth opportunities and is eyeing opening more flagship stores and is concentrating on international growth but through a different model to Oasis and Warehouse.

How does this impact a future sale of the brands?

Lovelock says it will facilitate future sales as it allows each individual brand to become more profitable, although he stresses that no processes have been initiated. It is likely that would-be buyers would be interested in taking individual brands rather than the group as a whole. In fact, Shearwood is understood to be eyeing a management buyout of premium retailer Karen Millen. “He’s working closer to the team so stands a good chance,” says chief financial officer Richard Glanville.

Will there be any job losses?

Yes, as the Aurora group will cease to exist its group management team will be leaving the business. Lovelock, Shearwood, Glanville, group omnichannel director Ishan Patel and human resources boss Julia Durbin will leave the business.