Burberry eyes up Laura Ashley

ROSE Marie Bravo, the chief executive of the Burberry fashion group, is believed to be looking at a bid for beleaguered store chain Laura Ashley.

Bravo, the highest-earning female boss at a British quoted company - she has a pay and bonus package worth £6m a year - has told close friends she is considering a number of options and is keen to take on a new challenge.

According to one source, Bravo has sounded out a major US private equity firm, thought to be KKR, about a deal to buy Laura Ashley.

The company, famed for its floral print dresses, is 43 per cent-owned by Malaysian United Industries. The business has spectacularly failed to return to the black despite millions in investment.

Laura Ashley reported an eight% fall in fashion sales in the 24 weeks to 10 January, though there was a three% rise for home furnishings.

Shares ended last week at 11 1/4p - compared with a 12-month high of 17p - valuing the company at slightly more than £84m.

Though family commitments mean that the American-born Bravo would like to spend more time in her native country, she has also been closely linked with the chief executive post at luxury goods and fashion group Gucci. Pinault-Printemps-Redoute, which owns Gucci, has made repeated offers to Bravo to succeed Domenico De Sole, who leaves in April.

The latest deal, said to be 'breathtaking', was offered just a few weeks ago, according to another close source.

Bravo has headed Burberry for seven years and was recently named as the 'most powerful woman in fashion', outranking Vogue's Anna Wintour and fashion guru Donna Karan in a magazine poll. She is credited with turning the 148-year-old Burberry plaid into a style icon, used on everything from umbrellas to ball gowns.

But although Burberry recently announced an 11% rise in retail sales, the UK market has been tough. Bravo has endured shareholder revolts over the size of her pay package.

If her contract were to be terminated she would be in line for a £12m pay-off.

Neither Bravo nor Burberry would comment.