Retailer Monsoon's chairman is in discussions over a possible demerger of the firm's expanding international business, The Times reported.

Chairman Peter Simon  said at the same time he reported the company's annual results yesterday (25 July) that the fashion chain was considering a variety of ways to "de-risk" the international operations, which have more than 350 stores across 35 countries.

"The international business has performed well through this period, and over the last two years," Simon said, adding: "I have however, increasing concerns about the exposure to more volatile revenue streams from the higher-risk territories in which it is currently expanding.

"…I am hopeful that we can find a solution to this situation in due course."

Company spokesman Tom Siveyer told just-style: "…we aren't able to comment further on the speculation in today's press on the international business".

Simon attempted to privatise the Monsoon group last summer.

The company yesterday reported "the most challenging year in the company's history", with a 2% pre-tax profit fall.

Turnover increased by 76% from GBP31.1m US$57.55m) to GBP54.6m with international operating profits up 88% from GBP6.6m to GBP12.4m.

The company has recently signed franchise agreements in Belgium, Finland, Ukraine, Azerbaijan, Slovakia, Croatia and South Korea and set up wholly owned businesses in France, Japan and Germany.