Dual or multiple sourcing of all materials had become company policy
in 1986. This was felt to be beneficial because it would avoid any signifi-
cant disruption in production if a single supplier were unable to meet an
order. The proportion of goods sourced externally had risen significantly in
recent years; nevertheless, about 70 per cent of home furnishings were still
produced in-house. The management, determined to retain control of its
fabric design and printing, agreed that the figure should remain roughly
the same. As for garments and other product ranges, they decided that the
proportion of bought-in products would increase further from the existing
45 to 85 per cent, with almost immediate effect. The outsourced items
would come from a host of new suppliers in the Far East (mostly Hong
Kong) and Eastern Europe. Laura Ashley sold more than 3 million gar-
ments a year through its stores, and the move offered a possible saving of
up to £2 for each garment sourced externally. Consequently, an announce-
ment on 27 September 1990 informed the company’s employees that a total
of six Welsh sewing factories and the factories in Ireland, Holland and
America were to be sold, closed or transferred to the Carno and Newtown
sites. The move reduced the 8000 strong work force worldwide by 1500. A
rationalization of the design studios followed soon afterwards.
A review of the business by management consultants, Coopers and
Lybrand, made depressing reading, but one glimmer of hope shone out
among the gloom: the Laura Ashley brand itself was still a force to be reck-
oned with. In recognition of this, Glenne Gibson, principal consultant of
Coopers and Lybrand’s retail group, joined Laura Ashley, in March 1991,
as the group’s first ever market planning director. In an interview with
Marketingmagazine soon afterwards, Gibson spoke confidently of ‘a
changing philosophy’ at Laura Ashley, explaining that ‘The management
has a real commitment to ensure Laura Ashley is customer-led and not pro-
duction driven’.^1 Ominously perhaps, the same article observed that ‘Talk
in the industry is not so positive ... Bernard Ashley has a reputation as a
difficult boss who acts on his own whim and yet is unwilling to change.’
Under new management
Jim Maxmin formally moved into his new post on 16 September 1991. On
Maxmin’s appointment Bernard Ashley relinquished his executive duties,
becoming Non-executive Chairman. Ashley had rarely attended board
meetings over the previous year; nevertheless, as holder of 59 per cent of
the company’s shares he continued to cast a long shadow over its pro-
ceedings. Putting the business in order would be a formidable challenge,
but the optimistic Maxmin was already planning its marketing-led renais-
sance. ‘You have to find out what your customers want, give it to them,
and just love ‘em to death’, enthused Maxmin to a journalist from the
440 Relationship Marketing