Retail and business services group GUS said it plans to demerge its remaining 65 per cent stake in luxury company Burberry on 13 December.

Subject to GUS and Burberry shareholder approval, this will be achieved by way of a dividend in specie and a consolidation of GUS shares.

GUS chairman Sir Victor Blank said: "The demerger of our remaining stake in Burberry is another major step in focusing GUS on fewer activities.

"Distributing our stake to existing GUS shareholders will enable them to participate directly in the exciting growth opportunities we see at Burberry."

Burberry designs, manufactures and distributes Burberry products worldwide, as well as licensing its name to third parties.

The company reported earlier this week that president and chief operating officer Brian Blake is to quit the company, following chief executive Rose Marie Bravo's resignation.

Burberry also reported a dip in first-half earnings but said it remains "cautiously optimistic" for future trading.