Laura Ashley will no longer have a bricks-and-mortar presence in Japan, following its decision to terminate a major licence agreement.
The agreement with Aeon, which also gives the retailer licence to operate in Hong Kong and Taiwan, will come to an end in September.
Laura Ashley holdings will take back the master licensing rights to the region and manage existing and new licensees to ensure that customers will still be able to shop online.
The furniture and fashion retailer has had a torrid time of late, issuing two profits warnings in the space of six months.
Chief executive KC Ng said: “The Laura Ashley Brand has been much-loved in Japan for over 30 years, and we see an exciting opportunity to build on this with the master licensing rights back under our management.
“Laura Ashley has a strong future in Japan and we are grateful to Aeon for its co-operation and help in building the brand presence in the region.”
The business did not rule out opening up stores in the region in the future, emphasising its commitment to the region.