Manufacturer Dawson International, the yarn spinning firm which suppliers brands such as Gucci, Prada and Louis Vuitton, has put its cashmere business Todd & Duncan up for sale.
Dawson International said it was discussing the possible sale of the business to its major supplier Ningxia Zhongyin Cashmere Company.
Dawson International chairman Michael Hartley said: “Our Todd & Duncan business, while showing a significant improvement in returning to profit in the year, is not yet delivering an acceptable return on capital employed.”
Separately Dawson International posted a sales rise of 15% to £106.8 million for the 53 weeks to January 3. The spinner turned an operating profit of £3.7m against a loss of £2.71m last year.
Dawson International chief executive Andy Bartmess said: “We have entered 2009 in a potion of strength based on the strategic actions taken and the results achieved in 2008. Our balance sheet is strong and the Group’s current businesses have an improved risk profile. However, current economic conditions in the countries where we operate are the worst that have been experienced for a very long time.”
He warned: “Our businesses are experiencing uncertainty with respect to demand and it is quite likely we will see lower sales levels in 2009 than in 2008.”