Forminster, supplier to the Kookai fashion brand, has sounded a note of pessimism over its future after a new master franchise deal with Kookai was stalled, AFX reported.

Kookai has reportedly refused a renewal of the two parties' present contract, which ends on 31 December.

Despite a willingness to negotiate with its supplier over a new deal, Kookai has yet to agree to another contract.

Chairman Philip Carter was quoted by AFX as saying that a failure to reach a new agreement might threaten Forminster's future operations in its present format.

Forminster is struggling to reverse widening losses.