SHARES in Forminster, the AIM-listed operator of Kookaï in the UK, were suspended yesterday as the clothing retailer admitted that its trading position from January 1 would be “highly uncertain”.

Forminster has been in discussions with Vivarte, the owner of the Kookaï brand since the French company said its franchise agreement with the UK business “was not appropriate to be renewed”.

Shares in Forminster have fallen from 20p to 3¾p since the end of September because of concerns over the franchise.

Forminster said that discussions had been inconclusive so far and that the date for the expiry of the franchise agreement was still uncertain.

The company, which has about 100 UK outlets, said that the shares would be suspended until the uncertainty over the matter had been resolved.

The franchise is due to expire next Saturday.

The Kookaï franchise forms most of Forminster’s business and the company is under increasing pressure as the quarterly rent day, Sunday, approaches.

Already this week Unwins, the off-licence chain, and MVC, the music and DVD store, have called in the receivers as retailers struggle to cope with increasing costs in a slow consumer market.

• The management of Stead & Simpson, have bought the UK’s third-largest specialist shoe retailer for £51.4 million in a deal backed by Bank of Scotland.

  Bank of Scotland will take a minority stake in the business alongside the company’s management team.

  Stead & Simpson trades under the Stead & Simpson, Shoe Express, Lilley & Skinner, Famous Footwear and Peter Briggs brands.

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