Al Fayed Group says costs of building business have proved too high.
Discount luxury goods and fashion site Cososa is set to close down in the coming months after its owner the Al Fayed group said the costs of building the brand as a market leader have proved too high.
The business was bought by the Al Fayed group in 2011 for an undisclosed sum. Following on from the successful sale of Harrods in May 2010 and that of Fulham Football Club in July 2013, the Al Fayed group now plans to steamline the business further by removing the "non-core company" from its portfolio. It is now in the process of conducting an orderly wind down of the Cocosa business in the months ahead.
Cocosa has made significant progress in its sector and built a reputation for selling quality products and well-known fashion brands, as well as modern and vintage designer jewellery.
In a statement released by Cocosa and the Al Fayed group it was said: "Despite this progress, the costs of continuing to build the brand to market leadership were deemed too high to merit material further investment.
"Cocosa is stable, is expressly not being placed in administration and the owners have fully committed to funding the wind down of the business. If, following consultation with staff the proposal proceeds, the 45 staff have been informed that commitments to them, to customers, suppliers and other stakeholders will be honoured in full."
An unnamed director of Cocosa added: "We thank our staff, our suppliers, including the wonderful luxury brands that we have been privileged to work with for their support, and the press, who have recognised the special niche that Cocosa has made for itself in the luxury market. We will be making available some very special offers to our customers over the next few weeks as we sell our remaining stocks, as our thanks for their loyalty to our business over the last five years.”