Danish brand house IC Companys is to sell off its contemporary brands Jackpot and Cottonfield after poor sales.
Chief executive Niels Mikkelsen said in recent years the two labels had delivered “unacceptable results” .
The brand house will also place the rest of its mid-market division, which includes Inwear, Part Two, Matinique and Soaked in Luxury, under close watch and could potentially pull out of territories it underperforms in.
The company will now focus on its premium division, with the creation of two new departments: Premium Outdoor, home to sports brands, and Premium Contemporary, which will house Tiger of Sweden and By Malene Birger.
The company unveiled interim results last week, recording a 3% dip in sales to 2,036m Danish Kroner (£233.9m). However operating profit increased by 10% to 160m DK (£18m) in the six months to the end of December 2012.
Sales in IC Companys premium segment improved by 1% to 1,136m DK (£130.9m) as like-for-like retail sales grew by 5%.
However sales in its middle market brands including Jackpot and Cottonfield fell by 15% to 668m DK (£76.9m).
The duo of brands have been on sale since December but according to reports in the Danish press, chief financial officer Cris Bigter said it is not clear whether a sale will be completed before the end of the financial year on June 30.