Industry News

Hot Tuna deal with Debenhams increases U.K. orders

Surfersvillage Global Surf News, 29 December, 2008 : - - Surf fashion retailer Hot Tuna said a deal with department store Debenhams saw its 2009 UK orders jump dramatically. Hot Tuna, which sells surf culture-inspired clothing for young people both in and out of the water, saw sales improve 82% to £1.1 million for the year to June 30, from £619,131 in 2007.

The group said it would focus on distributing its clothing through department stores in a shift away from independent retailers. It said its UK business had seen a "dramatic" increase in orders for spring 2009 after high street department store Debenhams increased the number of its stores to stock the brand from five to 45.

But the retailer incurred a £2.6 million write down in the value of its business in the year as it streamlined every aspect of its operations in an attempt to boost profitability. Chief executive Niels Juul said: "It has been a far from easy year at Hot Tuna and we have had to make some dramatic changes to the initial - inflated - company set-up."

Hot Tuna slashed staff numbers from 47 to 16 as part of the restructuring measures.

The group's losses for the year rose to £5.8 million - including the impairment charge - compared to a loss of £5.3 million in 2007. Seymour Pierce analyst Freddie George said the results were in line with expectations and left forecasts for the current year unchanged.

Noting the forward order book of £1.2 million for the spring as well as an increase in prospects in Australia and the UK, he said: "We believe shareholders will provide the extra capital to enable the company to go on to the next stage of development and profitability."

Hot Tuna, which was founded in Australia in the late 1960s, also sells its clothing across Europe and the United States.

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