Marks and Spencer could release Davies

MARKS & Spencer boss Stuart Rose could end the contract with the man behind the store’s Per Una clothing brand, it was reported yesterday.

Chief executive Mr Rose could terminate a deal with George Davies if he decides the businessman is demanding an excessive share of the returns, according to the Sunday Telegraph.

It is thought the struggling retailer believes it would be able to run the fashion brand without him.

Retail entrepreneur Mr Davies invented the womenswear range for M&S in 2001 in a bid to reverse the chain’s declining fortunes.

He originally owned Per Una and M&S only had the right to sell it in its stores. This changed last year when the retailer paid £125 million for full control of the brand, as part of its strategy to defeat a £9.1 billion takeover attempt by retail tycoon Philip Green.

At the time, M&S said Mr Davies would stay on for at least two years as chief executive of Per Una.

It was suggested that Mr Rose would not have agreed to the original deal with Mr Davies, which was signed before he took over at the helm.

Each side has to give a year’s notice to end the contract and there had been speculation that Mr Davies could walk away.

Mr Davies made his name in the 1980s when he created the Next brand, building it into one of Britain’s top 100 companies, before going on to set up Asda’s George clothing label.

His Per Una range proved a hit with customers despite disappointing clothing sales elsewhere in the business.

Recent figures from M&S showed its grip on the British clothing market was still weakening, with sales declining for seventh quarter in a row. Like-for-like sales fell 5.4% in the 14 weeks to July 9, a period labelled as “pretty grim” by Mr Rose. Marks and Spencer refused to comment on reports.