Laura Ashley denies receiving takeover bid

Refuting media speculations over a possible takeover, the board of Laura Ashley confirmed through a statement that no bid has been received for the company. According The Sunday Telegraph report, the troubled British fashion retailer has been approached by a Manchester-born entrepreneur Michael Flacks to acquire controlling stake in the business.

“As far as I am concerned, there is no takeover bid because there has been no approach whatsoever. If and when an approach is made, the board will discharge its duties as always and assess it on its relative merits,” said Andrew Khoo, Chairman of Laura Ashley in the statement issued by the company.

He further added: “as major shareholders of Laura Ashley, we have no intention of divesting our controlling stake. Whilst I understand why potential parties would think we are significantly undervalued, I have complete confidence that we will be able to grow profitably and in a sustainable manner so as to create long-term value for our shareholders.”

In its recent trading update for the first half of current financial year, Laura Ashley Holdings Plc reported total sales of 122.9 million pounds, down 8.7 percent, which the company said was primarily due to the closure of four stores during the period, like-for-like retail sales drop of 4.2 percent and the termination of the master license agreement with its previous Japanese partner.