The holding company for Richard Branson's cosmetics and clothing business has issued a profit warning days before launching the first Virgin fashion range.
Victory Corporation, which is launching its upmarket Virgin clothing collection on Thursday, said tough High Street conditions and a strategic rethink would make losses ''significantly'' worse than expected.
Shares fell by nearly 50% to 10.5p after the statement, which added that founding chairman Rory McCarthy was stepping down. Two other founder directors, Tim McCarthy and Brad Rosser, are also quitting.
Rory McCarthy was replaced as chairman by Ian Pluthero
in April.
As well as owning the Virgin fashion label, Victory operates the six-strong chain of Virgin Vie perfume shops.
The company had planned to open 14 stores this year but has scaled back to three, in Brighton, Newcastle and Dartford.
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