Speciality Fashion Group is set to terminate its licence agreement with underwear brand La Senza.

The agreement will wind down over the next six months, with the 19 stores to be closed or converted for use by one of the group's other brands. Its e-commerce site is expected to continue to trade for the remainder of the year.

Speciality Fashion Group said it was ending the agreement because the seasonal and demographic complexities of the La Senza product being developed for the North American market have not translated, and proved challenging in the Australian market.