Casual wear retailer Giordano International on Thursday announced it had scrapped its only European business and taken a $1.3 million write-off as a result.

The Hong Kong-based company said it had dissolved the German joint venture with Metro AG and the Salzmann Group, which sold Giordano apparel through the Real hypermarket chain.

Giordano invested almost $6m in the project two years ago but said today it's still keen to sell its clothes in Europe. However, it would ensure it was involved in the management side with future partners handling distribution.