array of paint, tiles and bedlinen. A substantial proportion of the range was
new each year, but best-selling lines would be retained for a number of
seasons. In addition, a separate and exclusive ‘Decorator Collection’ of fur-
nishings was produced for interior designers.
Fabric, soft furnishings and wallpaper came from the company’s own
factories, one in Carno and one in Helmond, Holland. Meanwhile 10 fac-
tories in Wales and one in Ireland provided the shops with garments.
Additional garment factories were planned for the UK and in the US.
Wallpaper and fabric production capacity was also about to increase with
the development of a major wallpaper and fabric plant alongside a new
distribution centre at Newtown, close to the Carno facilities.
In the summer of 1985, an official announcement confirmed rumours of
a public flotation. The offer was expected to raise around £2 million to fund
the next round of business development. A majority holding – approxi-
mately 72 per cent of the stock – would remain under the direct control of
the Ashley family. Of the shares on offer, around £1.2 million worth were
to be made available to Laura Ashley staff at no cost to the employees
themselves. Employees would also be given preferential rights to buy
additional shares.
The fairy-tale story came to an abrupt end on the night of 8 September
1985, when Laura fell down some stairs and was fatally injured. The family
had been celebrating her 60th birthday. She died of her injuries a week later.
The company’s bankers suggested that the flotation should be delayed,
but were persuaded by other members of the management team that Laura’s
death was inconsequential to the day-to-day running of the business (see
Table 6.1.1 for profiles of directors, 1985/86). The Ashleys had reduced their
direct involvement in the day-to-day running of the business to some extent
the previous year, but Bernard Ashley scaled down his involvement further
following the death of his wife. With the company valued at £270 million, the
flotation went ahead. The share issue was oversubscribed 34 times.
Post flotation
From 1985 to 1988 the expansion of the retail empire continued apace,
almost doubling the number of shops in the UK and continental Europe. In
North America and the Pacific, the company quickly realized its ambitions
to have a Laura Ashley store in every major city in Australia, and in every
city with a population of over 1 million in the United States (refer to Tables
6.1.2–6.1.4 for growth of retail operations). By 1986, the North American
division (helped by favourable exchange rates) was contributing about half
of the company’s overall pre-tax profits.
Meanwhile, behind the scenes, radical changes were occurring in the way
that the products were designed and selected. Gone were the selection
434 Relationship Marketing