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City File: Fashion victim

Saturday 10 April 1993 18:02 EDT
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LAURA ASHLEY, the chintzy frock and drapery retailer, is celebrating its 40th anniversary with a tumble in its US profits. Former Walt Disney executive Donna Moore was hired to revive the troubled US business. But after a series of problems she left the group. Now the UK retailing head, Steve Cotter, is clocking up air miles trying to turn things round.

He has a lot of work to do. James Capel reckons the US side lost dollars 12m ( pounds 7m) last year, holding back Laura Ashley's recovery so that it will only be able to report taxable profits of pounds 1.5m. The City is hoping Mr Cotter will have good news. But the pessimists fear the American operation will still be loss making this year, and are reckoning on profits of only pounds 5m for the group. Avoid the shares.

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