Clothing company Country Casuals is considering revamping its name and image in an attempt to boost flagging sales.

The loss-making chain, which has traditionally concentrated on tailored but easy-to-wear clothing, has been gradually losing out to more contemporary, fashionable trends in the past few years.

Nick Hollingworth, chief executive of Country Casual's parent company Austin Reed, believes the chain needs to accept that women no longer want to dress conservatively.

Hollingworth has said the division's designs will be updated and he will make a decision on whether or not to scrap the 'Country Casuals' name before the end of the year.

Austin Reed suffered a £3.3 million pre-tax loss in the first half of 2004, compared to a £3.5m profit in the same period in 2003.

Sales at Austin Reed-branded stores increased by 4 per cent, but dropped by 11 per cent at Country Casual divisions.