RECOVERY hopes at Winston Churchill's favourite suit maker were dealt a further blow last night.

While losses at Thirsk-based Austin Reed narrowed to £1.1m in the six months to August 13, sales at its rebranded Country Casuals division remained deep in negative territory.

Sales at the main Austin Reed division picked up one per cent in the seven weeks to October 1 - stripping out the impact of the weaker tourist market on the company's flagship outlet at London's Regent Street.

But like-for-like sales at CC - as the Country Casuals division is now known - showed a 15 per cent slide.

Austin Reed - which has its administrative and distribution operations in Thirsk - said the reaction from shoppers to the rebranding had been positive but that some areas of the product range needed further development.

The group pledged to strengthen design and buying teams as the division continued its efforts to reflect younger tastes in the over-40s market.