The troubled fashion and fabrics chain Laura Ashley has announced the sale of five factories where it employs 669 people.

The company said it was pulling out of manufacturing to focus on its retail operations.

The premises being put on the market are two sewing factories in Oswestry and Gresford, the Texplan wallpaper and fabric printing operation in Newtown, a made-to-measure and fabric printing site in Carno and a manufacturing facility in Helmond, Netherlands.

Laura Ashley said it was putting the businesses up for sale in an attempt to prevent job losses and it had assured workers at its five sites that jobs would not be lost.

'Money-making businesses'

The company said the operations had improved considerably over the last two years and that they were profitable businesses.

A spokeswoman said: "The possibility is to sell them all as one business, which would be the best, or separately as the sites have great potential as independent manufacturers.

"As a result of the sale all jobs would be transferred to the new owners and we are confident of finding buyers for the businesses."

Laura Ashley pledged to continue to deal with the factories in Wales once the sales were completed.

The company sold two textile factories in Machynlleth and Caernarfon last August that saw 190 jobs change into the hands of companies Merchant and Baird respectively.

Shares hit record low

The news came as the group disappointed the City with a drop in Christmas sales.

Very poor sales have led to shares slump

The company dropped to an all-time low on the stock market moments after releasing its second-half trading statement.

Laura Ashley slumped around 22% to 26.5p in a plunge that wiped more than £18 million off the value of its shares after it said total shop sales were down 1% during the 24 weeks to January 10.

The results come amid a rocky period for the group that saw the departure of high-flying American Ann Iverson who was brought in as the company's saviour.

She was forced out as chief executive last year as problems mounted.
 

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