Fashion chain takes a tumble.

AS a bellwether of the retail sector Marks & Spencer offers some comfort for traders but many store chains are still suffering terribly from the downturn.

Fashion chain Alexon reported losses of pounds 8.1m after the collapse of its Bay Trading subsidiary capped a difficult half-year period.

The owner of brands including Ann Harvey and Kaliko said trading at the start of the second half had also been challenging, but chief executive Jane McNally stressed the groundwork was being put in place for a turnaround.

She pointed to new brand identities for its key brands, clearer direction on product design and "encouraging early signs" from new autumn ranges.

Alexon, which has 85 shops and 880 concession outlets in the UK, dived into the red after it took pounds 9m of exceptional costs, mainly relating to onerous leases stemming from April's administration of Bay Trading.

The collapse came after insurers withdrew crucial trade credit cover, thwarting plans by Alexon to revive the chain's fortunes with a revamp, a new design team and fresh product lines.

Stripping out the impact of one-off items, profits for the six months to August 1 fell to pounds 900,000 from pounds 6.9m a year earlier. Sales were 11% lower than the prior year, with like-for-like sales down 12.6%.

But online fashion retailer ASOS showed the benefits of using technology to maximise profits and of customers looking for bargains as it posted a 47% year-on-year rise in sales.

The company, which said its overseas trade had increased 110% and shoppers in other countries now accounted for a quarter of its business.

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