The owner of Phase Eight has confirmed the fashion brand will shutter more than 100 locations globally in an attempt to right-size the business.
Justin Hampshire, group chief executive of TFG Brands London, said a “rationalisation of the store portfolio” formed part of the label’s turnaround plan.
The South African owner reported a £31m brand impairment related to the Phase Eight business in its full-year results to March 31, 2026, last week.
Gross profit for the UK division, which also owns Hobbs, Whistles and White Stuff, rose 29% to £488m. However, it fell 6.5% to £186m when excluding the White Stuff acquisition.
Sales, excluding White Stuff, remained flat at £296m and operational EBIT dropped to a loss of £2m.
TFG chief executive Anthony Thunström said: “UK consumer and retail market has been under the greatest pressure of all of our territories over the past year.
“Consumer confidence never recovered post-Covid and inflation having come back into range is going to accelerate again.
”Phase Eight faces the greatest challenges, especially in respect of their high historical reliance on department store channels.”
Thunström continued: “With these factors in mind, Justin [Hampshire], Emma [Mackrill, chief financial officer] and the UK team are going to be very focused on right-sizing the Phase Eight costs and footprint to reduce drag on profits and meaningfully expand the customer channels and select new partner opportunities as select third party channels continue to suffer.”
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