Ron Baker, director of troubled Australian fashion retailer Country Road, has resigned from his post, the company said in a press release.

The decision is effective immediately.

Last week, Country Road announced that it would post an A$8m loss this year. Investment banker, Michael Kroger, condemned the retailer's South African owners, saying that its management has been disastrous.

Kroger said they had taken the Australian company backwards since 1998.

South Africa's Woolworths group acquired 88 per cent of the Australian retailer in 1998. In 1997, Country Road recorded a profit of around $A10m. Customers have accused Country Road of being overpriced.