Tegan fashion french connection
Published: 22:39 BST, 3 August 2013 | Updated: 10:55 BST, 4 August 2013
Failure:Tegan Fashion was supposed to boost French Connection's profits but ended up as a drain
Fashion chain French Connection is to jettison its Tegan Fashion brand just 18 months after it was launched.
The Tegan brand trades from its own website, which will be shut down within weeks.
The closure is part of an ongoing turnround of the group designed to stabilise profits.
The strategy has seen French Connection dispose of poorly performing stores and close or sell weak business units.
In recent years it has shut its Japanese business and has disposed of its Nicole Farhi brand, which has since gone into administration and been bought out by Matalan heiress Maxine Hargreaves-Adams.
Tegan was aimed at a slightly older clientele than the main French Connection label. Prices for dresses ranged from £120 to £220.
It operated as a separate business with its own design team, but it is thought to have become a drain on the main group’s management time and resources.
A spokesman said: ‘It was a startup business that we have taken the decision to close and will not have a material impact on the trading of the group.’
French Connection, which is listed on the stock market and is valued at £30million, has made a loss in three of its past five years of trading. It lost £10.5million in the year to January.