Sales at Intimas fell 8% to £19.5 million for the year to December 3, with the company reporting a loss before tax of £3.6m compared to a profit of £1.07m the previous year.
Gibson admitted that most of Intimas' problems had been "self-inflicted". He said: "There had been a lack of focus on the essential elements of running a successful wholesale clothing business, designing creatively, buying well, selling strongly and organising an effective supply chain. Mistakes had been made in most parts of the business, primarily due to errors in resource allocation, strategic intent and application. In short, management had been focusing on the wrong issues at the wrong time in the wrong areas. However, during the course of 2007, a number of senior management appointments were made and this new team is addressing these issues vigorously."
Gibson has launched a strategic review of the lingerie business, which he hopes to complete at the end of May. He said: "This will be examining in detail each part of the business – brands, private label and retail – and assessing whether we have the right model to develop and grow Intimas back to an acceptable level of profitability."