Laura Ashley struggles through AGM

STRUGGLING retail chain Laura Ashley cannot keep investors or shoppers happy.

It chose to ban journalists from its annual meeting in London, but still faced a barrage of questions from long-suffering small shareholders.

Hugh Walker, a private shareholder from London, said afterwards that Laura Ashley was 'always promising things' but did not deliver. He added: 'They are top heavy with accountants and lawyers but don't understand fashion.'

The re-election of chairman Dr Khoo Kay and non-executive directors resulted in a massive protest vote from independent shareholders. Some 12% of voters were against their re-election. Since nearly 60% of the shares are controlled by Dr Khoo, the real revolt was much larger.

New chief executive Lillian Tan says that she may lift reporting restrictions on the annual meeting next year.

But this does nothing to allay the concerns of the Association of British Insurers, which accuses the firm of serious breaches of corporate-governance best practice.

Tan, who was a non-executive director at the fashion chain until the previous chief executive quit, reckons business is improving. But investors, who have seen numerous directors depart by the back door, are wary of false dawns.