Alexon Group chief executive Jane McNally has hit back at suggestions that the beleaguered womenswear group is facing further troubles.
This week, broker Seymour Pierce issued a note in which it downgraded its profit forecast for the 2010 year from break even to a pre-tax loss of £5m. The figure includes the losses incurred by value chain Bay Trading, which went into administration in April.
In the note, Seymour Pierce said: “We believe management must prioritise retention of space in the department stores, which are looking to cut back on underperforming concessions.”
It added: “Management is too keen to keep alive all five brands and embark on a store-development programme and overseas strategy.”
McNally said none of the group’s stockists had indicated they will be looking to drop Alexon’s brands, which include plus-size brand Ann Harvey, casualwear brand Dash, mainstream labels Kaliko and Alex & Co, and petites brand Minuet.
McNally, who joined the business last June, said the note was based on old information. She said: “We have worked hard to differentiate our brands this year and had a great response to our autumn 09 collections. We are relaunching in House of Fraser stores in early autumn. This will involve a few new concessions but mostly refits to revive the image of Kaliko, Minuet and Alex & Co.”
She added: “Most investors know we are implementing a medium-term not a short-term change, and remain loyal.”