Fashion retailer Etam's 210-strong UK chain has plunged back into the red, and speculation is mounting that the French parent aims to sell the British business.
UK operating losses were a reported EUR16.4 million (£10.9 million) in 2003, compared with a profit of EUR800,000 (£532,495) in 2002. The retailer is said by industry sources to have offered the UK chain to Bhs owner Philip Green and New Look within the past 12 months.
However, any disposal would be complicated by parent Etam Developpement's determination to retain the rights to the Etam name.
The UK stores' poor performance has continued into 2004, French analysts say. The company is apparently taking steps to reinvigorate the business and stem losses.
Buying director Louise Koser, formerly product director at Long Tall Sally and previously at Arcadia, was appointed in January to head a new buying team.
One analyst said: 'I would expect them to give the new team six to 12 months, but after that the market may expect them to consider a sale.'
The British arm has struggled for several years, and made losses in 2000 and 2001. The UK accounts for approximately 30 per cent of Etam Developpement's EUR1.1 billion (£732.2 million) sales.
An Etam spokeswoman refused to comment on the sale speculation.
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