NATIONAL: Peter Alexander's leap into La La Land looks set to be short lived.
Parent company Premier Investments plans to downsize its American operations in the face of "unprecedented" economic conditions.
The sleepwear retailer launched into the American market just last year with three stores across California, including a flagship site on Robertson Boulevard in Los Angeles. It is understood the brand's San Jose site closed last week after executives said it "just walked into a storm in the US" - a sign of worsening conditions in the retail market there.
Prior to the global financial crisis, Peter Alexander management had planned a rapid retail rollout across the market over 2008/09.
According to Premier's 2009 interim results, the brand's American arm generated just $A1.046 million in sales for the half year ended January 24. Its network of 30 Australian and New Zealand retail stores generated $25.6 million in sales, up 8.4 per cent on the previous corresponding period.
Premier said it had made "adequate" provisions for costs associated with American store leases when it acquired Just Group - which owned and operated Peter Alexander - in September 2008.
"The board is continuing to evaluate the options available to reduce the ongoing costs and downsize the USA operations," the comapny said in a statement to shareholders.
Premier reported a net profit of $49.1 million for the half year ended January 24, up from $21.1 million from the same period last year.
Just Group sales in Australia and New Zealand were up 1.8 per cent to $432 million while earnings before interest, tax and amortisation was down 13 per cent to 56 million on the previous corresponding period.
This was the first time its result included the impact of its acquisition of Just Group.