Boutiques San Francisco Inc is to withhold funding from its 50.1 per cent owned subsidiary, Boutiques West Coast Inc.

In a press statement, the company said the decision was made to preserve its cash flow in order to support its obligations toward its suppliers, landlords and other creditors from its other operations. Its investment in West Coast was $11.2 million at 31 October 2002.

Boutiques San Francisco also said it is in talks with its partner in West Coast, Denis Lazanis, who is interested in buying San Francisco's interest in the subsidiary.