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Bitter Tuesday for international apparel stocks

By FashionUnited

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Tuesday left a bitter trace for quoted apparel companies around

the globe, with Future Retail struggling to come to terms with the expectations after just 3 days of trading; apparel stocks dragging larger markets in Wall Street and the UK mourning another two retailers that filed for administration: Internaçionale and Ark.

In India, recently floated Future Retail saw its shares extended their decline on Monday, falling as much as 19 percent during the trading session. The stock lost 42.8 percent on Friday before ending the day 33 percent down at 98.60 crore on the BSE.

The stock has come under sharp selling pressure after the retailer's fashion brands were spun off into a separate unit on Friday. Future, formerly known as Pantaloon Retail Ltd, and Future Ventures India agreed in November 2012 to demerge their fashion businesses into a new listed unit that will simplify the businesses into three main segments.

Meanwhile, in the UK, it was a sad day for national retail, as Internaçionale allegedly went into administration, together with Dwell, ModelZone and fashion peer Ark, which also filed notices of their intentions to appoint administrators.

Men's Wearhouse Inc (MW.N) made it to the news on Tuesday after saying it fired Founder and Executive Chairman George Zimmer after he pushed to take the company private and effectively demanded to be reinstated as the sole decision maker at the clothing chain.

Other corporate appointments included Jaeger’s recently appointed Colin Henry – former Chief Product Officer at fashion retailer Esprit as CEO of the company, effective July 15.

On a separate note yet still on corporate movements, Delphine Arnault, the daughter of Bernard Arnault, is allegedly moving to Louis Vuitton, effective September, to serve as Deputy General Manager.

Big movers in Wall Street were American Eagle Outfitters (NYSE: AEO), L Brands Inc. (NYSE: LTD), Chico's FAS Inc. (NYSE: CHS), and The Wet Seal Inc. (NASDAQ: WTSL). Finally, the FashionUnited Top 100 Index mirrored the general mood by closing down by 1.17 percent at 1,491.58 points.
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