Fashion chain Guava Clothing, launched just four years ago, is axing all its stores amid reports a sharp downturn in profits had signalled the death knell of the label.

Up to 200 full and part-time shop assistants have been affected by the sudden closures which have affected the whole chain of around 50 stores across the country.

According to Australia's Daily Telegraph, senior management of Guava Clothing would not comment on the closure yesterday but staff had been told a significant downturn in profits had triggered the move.

The paper added that it is understood Guava Clothing's sister label Joi will continue operating.