Clothing retailer Alexon has admitted that £3m will be knocked off its profits this year as a result of the collapse of Allders, the stores where it ran 118 concessions.
The admission came as the company announced disappointing results and said current trading had worsened.
Group sales in the past nine weeks have fallen 3pc, with sales at its high street stores down about 6pc. The group has been particularly hit by poor sales at its youth fashion chain Bay Trading.
The company refused to blame the weather. Robin Piggott, finance director, said: "We were trimming the value of our garments, making them cheaper and cheaper but less interesting."
John Osborn, chief executive, said: "I've stood up Japanese-style and apologised for the sales fall but I'm not going to be slitting my wrists."
Analysts expressed surprise at the size of the hit from Allders. John Stevenson at Shore Capital said: "Alexon has over 1,000 concessions, with only 118 of those at Allders.''
Mr Piggot said the £3m related in part to making redundant 250 Alexon staff who worked at Allders. Group pre-tax profits fell 8pc to £26.9m on sales up 2pc to £424m. A final dividend of 5.67p will be paid on June 30.
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