Pringle wins fresh backing despite losses

HONG Kong-based textile tycoon Kenneth Fang has pumped a further £10.9 million into Pringle of Scotland as the iconic knitwear brand continues to rack up losses.

The investment, which takes the total pumped into the company by Fang over the last three years to almost £30m, came as it reported pre-tax losses of £7.25m in the year to 29 January, compared to £6.7m in the prior 44 week period.

Sales fell to £10.19m from £11.06m, blamed on the effects of the global recession. During the year, Fang invested £5m with a further £5.9m following the financial year end. Total losses since 2006 are now more than £36m and the company has said it expects to continue to remain in the red while it invests in the long-term development of the business.

“We are satisfied that the development of the brand and the business are progressing in line with long term strategic objectives,” it said. The number employed by fashion house during the year fell to 104 from 122. Although the business is now run from Hong Kong and London following the closure of its historic base in Hawick in 2008, some production is carried out at Scottish mills.

Mary-Adair Macaire – previously global marketing boss of Chanel – was brought in as chief executive of Pringle of Scotland in 2008 as part of the company’s efforts to revitalise and grow the brand. She left her post in February this year and was replaced by Jean Fang, a member of the family which owns the company.

Tilda Swinton, the Academy Award-winning Scottish actress, fronted Pringle’s latest autumn/winter campaign for the third year running and celebrities including Madonna, Claudia Schiffer and Scarlett Johansson are also fans of the brand.