Edinburgh Woollen Mill owned Jane Norman is to close its London head office and relocate to Cardiff, affecting around 40 staff.

The retailer, which Edinburgh Woollen Mill acquired out of administration at the end of June last year, told staff at its Hanover Square head Office about the relocation today, Retail-Week’s sister title Drapers revealed.

The Jane Norman team will share premises with Peacocks, also owned by Edinburgh Woollen Mill.

Jane Norman’s head office houses the retailer’s design, buying and merchandising functions as well as the PR and HR functions.

A source close to the situation said: “They [Edinburgh Woollen Mill] have obviously decided that it will be much more cost effective to operate the business from Cardiff in the same premises as Peacocks rather than at the office in London.

“Personally I think it is a mistake, as a fashion business needs to be in London at the heart of the fashion industry.”

It has not been confirmed when the move will take place but it is thought that staff who do not wish to relocate to Cardiff may have to leave the business.

Jane Norman has made several high profile appointments since its acquisition by Edinburgh Woollen Mill including Sarah O’Shea from Irish fashion chain A-Wear as buying and merchandising director in May of this year.

Jane Norman could not be reached for comment.