Laura Ashley has reported deepening losses and falling sales in its interim results, which has resulted in Katharine Poulter being promoted to chief executive with immediate effect.

The embattled homewares and fashion brand posted losses of £4m before tax for the 26 weeks to December 31, 2019, deepening from £1.5m the previous year.

Total sales across the group fell to £109.6m, down from £122.9m in the corresponding period the previous year, while like-for-like sales slumped by 10.4%

In a statement, Laura Ashley’s chair Andrew Khoo blamed its results on the ”well-documented market challenges facing the retail sector. Similarly at Laura Ashley, we have seen a combination of factors impact our results, ranging from higher costs largely driven by the Brexit uncertainty, minimum wages and business rates increases.”

Chief executive Kwan Cheong Ng has stepped down to be replaced with immediate effect by Poulter, who joined the business at the start of the year as chief financial officer.

Poulter has more than 25 years’ experience working in retail, with companies such as Marks & Spencer, Home Retail Group, Kingfisher, Habitat and Wilko. Despite having been with Laura Ashley just over a month, the retailer said Poulter had “spearheaded a strategic review of the business”. 

Laura Ashley was updating the markets having secured a £20m loan with lender Wells Fargo earlier in the week and shoring up its immediate funding concerns.

The retailer had admitted that, were it not able to secure new funding, it would have to “consider all available options”. 

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