Contemporary brands Jackpot and Cottonfield will cease to exist as wholesale labels next year after being sold to Danish retailer Coop.
Last week Danish brand house IC Companies sold off the brands as part of a strategy to simplify its business model. The company did not disclose how much the deal was worth.
It is understood that the majority of Jackpot employees have been made redundant, although some staff will transfer to Coop.
The distribution of the brands to wholesale stockists will be “gradually phased out” by the end of the year.
In February Drapers reported the group was planning to sell Jackpot and Cottonfield on the back of poor performance. At the time chief executive Niels Mikkelsen said the two labels had delivered “unacceptable results” in recent years.
But in announcing the sale of the business, Mikkelsen said the two brands would become a “cornerstone” in Coop’s new textile venture.
Mikkelsen said as a result of the sale IC Companies is expecting cash flow at the group to experience a positive impact of around DKK 30m (£3.4m). However as a result of the discontinued operations financial results for the year will be negatively affected by around DKK 80m (£9.2).