M&S To Terminate Beckham Contract

Marks & Spencer is expected to terminate its contract with David Beckham earlier than expected as part of its efforts to rationalise its range of sub-brands, reported The Financial Times. The Beckham deal, launched to much fanfare in spring 2002, had been set to run into the spring, but it is now thought that M&S plans to axe the England captain and Real Madrid star's clothing range contract within the next month.

This means that the autumn range of DB07, Beckham's fourth collection, will be his last, with the retailer dropping plans for a spring offering in 2005. Tony Shiret, analyst at CSFB, said the DB07 range was an important component of M&S's children's collection, which has struggled for the past three years and was coming under fierce competition from Asda's cheaper George clothing lines.

"I think it was one of the only things that worked in the children's range," he told the FT, noting though that since Beckham's move to Real Madrid, "in terms of celebrity he has diminished a bit here."