British entrepreneur Richard Branson has parlayed a small record business into a multi-million pound empire encompassing everything from aeroplanes to soft drinks.

Britain's best known businessman

Now he wants to add a clothing label to the growing number of Virgin brands.

On Thursday the Virgin fashion collection was launched. It features high-fashion items that will eventually be distributed in 200 stores around the UK, designed by young, up-and-coming designers.

The clothes will initially be displayed in Selfridges, the big London department store.

But the company behind the clothes has had some difficulties recently. Shares in Victory Corp plc, which also markets cosmetics under the label Virgin Vie, fell sharply on the AIM stock market for smaller companies after the company said it would not become profitable until 2001. Richard Branson this week moved to take a controlling stake in the company, raising his holdings to 54% and paying only 10p a share - compared to the price two years ago of 58p when the new company was launched.

Diluting the brand

Virgin's most successful business

Since Richard Branson launched his own record company at the age of 19, he has defied convention by branching out in a bewildering range of businesses.

In l984 he added an airline - Virgin Atlantic - to challenge British Airways. Hotels and a holiday company soon followed. Now he is trying to tackle the European short-haul airline market.

In l985 he floated his company on the stock market, but he bought it back in 1988 £248m following the stock market crash.

In 1991 he sold his Virgin Music business to EMI for $1bn.

In 1994 he launched Virgin cola and challenged Coca-Cola's marketing practices.

He acquired MGM's cinemas in the UK and refurbished them as Virgin cinemas.

He then acquired a train business - the West Coast Main Line and took a stake in Eurostar, the cross-channel service to Paris and Brussels.

And in 1996 he moved into financial services, launching pensions, insurance, and stock market PEPs that were marketed as Virgin Direct - which has taken £1bn in funds.

All these have one feature in common - an attempt to challenge the establishment and find a business opportunity where the existing firms have become too complacent.

But some brand specialists say that Branson risked diluting his brand. Doug Hamilton of brand specialists Wolf Olins said "The danger is that the Virgin Group will cease to be alternative..and end up looking desperately ordinary."

Critics cite the cinema chain and the Cola as unsuccessful attempts to brand without enough investment to carry it off.

And Virgin trains - which inherited its trains and staff from British Rail - may damage the company's image if it cannot improve efficiency.

Selling his stake

With his genius for publicity, Richard Branson has also been successful in attracting funds into his businesses from others.

He only put up £14.5m for his 50% stake in Virgin Direct, the personal investment business, while his partner, the Australian insurance company AMP, put up £450m for its 50% stake.

And Stagecoach, the bus and train operator, paid £158m for Virgin Rail.

Critics in the investment community believe that in many areas - for example retailing - Virgin does not have the cash to realise its own ambitions without partners.

And it operates in businesses with either small margins - like record stores - or earnings that fluctuate with the business cycle - like airlines - so it could be vulnerable to another downturn.

But so far Mr Branson has been able to confound his critics after nearly going under in the last recession.