Clothing retail group Les Boutiques San Francisco Inc on Friday said it had ditched plans for a new Les Ailes de la Mode store in the Fairview shopping centre in western Montreal.

The operator of 183 stores under various banners such as West Coast and Bikini Village said in a statement it had agreed to pay the owner a C$1.4 million penalty for breaking the lease.

Les Boutiques recently announced plans to cut 60 jobs at its head office as it posted a third quarter loss of C$800,000 amid problems at its new flagship Les Ailes in the Eaton Building downtown.