AllSaints has terminated its concession agreement with House of Fraser to protect its full-price standalone operation.
The young fashion chain’s management wrote to its staff this week to confirm it would close its HoF concessions by March next year.
Both parties had been locked in talks for several weeks (Drapers, September 25) over the future of the partnership but sources said they had been unable to agree on terms and that AllSaints had been disappointed with the level of discounting HoF had employed in recent months.
The letter to staff seen by Drapers said the concession model no longer fitted with the AllSaints “model for growth” and that its investment in certain concessions had “lost viability” when compared to its standalone stores.
It added: “We have been working with our concession partners to resolve issues of financial viability and brand management but unfortunately in some cases it has not been possible to do this.”
AllSaints’ HoF concessions are believed to generate under £20m of its total turnover, believed to be in excess of £150m.
HoF chairman Don McCarthy said that the department store already had a replacement for AllSaints lined up.