Struggling clothing retailer Austin Reed Group Plc has reported first-half losses on declining revenue.

Net loss for the six months ended 14 August was £2.47 million, or 7.9 pence a share, compared with a profit of £3.38m, or 10.7 pence, a year ago.

Sales at stores open at least a year fell by 4 per cent.

Chief executive Nick Hollingworth said in a statement: "The first-half results were unacceptable, but I am encouraged by the positive reaction to the recent changes implemented in the business".

In July the company said it was rethinking its supplier payment terms and planning to shut its Country Casual operations in Canada.