Harrods ex-chief takes on Etam

FORMER Harrods chief executive Richard Simonin has taken up the challenge of reversing the decline of French fashion retailer Etam Developpement.

His appointment as head of the retail chain that has sales of €1bn (£686m) a year and boasts the Etam, Etam Lingerie, Tammy and 1.2.3 brands was announced last night alongside 2004 net losses of €61.1m.

Simonin's first challenge is to complete the sale of Etam Plc in Britain, which was bought for £93m in March 1998, and has not delivered a profit since.

The 260 British stores were put up for sale in January when Paris-based Etam Developpement warned of impending losses. The group said last night that discussions about a sale of the British arm were progressing well. A write-off of e74.6m for its British business includes €37.8m for last year's net UK loss.

But Simonin, who is credited with almost doubling Harrods' profits to £20m during his three-year tenure, will face tough challenges even after the British losses are staunched.

Sales and profits in Etam's core French market are declining. The group also has to start delivering profits in China after opening 520 stores there last year.