Phase Eight was bought on department stores — then the department stores went

TFG London, the UK arm of South Africa's Foschini Group, has grown by buying British heritage brands: Phase Eight first, then Hobbs, then White Stuff in October 2024. The anchor acquisition carried a hidden exposure: when Phase Eight was bought, around 70% of its sales ran through department stores — the channel that proceeded to shrink for the rest of the decade.

The accounts for the year to 31 March 2026, published on 8 June, showed revenue up 29.4% to £488 million — and an operating loss of £21 million where the year before there had been a £23 million profit. The growth was almost entirely White Stuff, which added £192 million of pro-forma sales; without it, the division's sales were flat at £296 million. The loss was driven by a £31.2 million impairment written against Phase Eight, on weaker long-term cash-flow expectations.

Beneath the impairment, the trading told the same story: gross profit down 6.5%, expenses up 5.6%, divisional EBIT before impairment down 65% from £26 million to £9 million. Occasionwear demand was weak, London and Australia softer than expected, and a cyber incident at a key online concession partner disrupted trading. The estate shrank by a net 50 doors — 98 closures against 48 openings, leaving 649 — and TFG announced an accelerated right-sizing of Phase Eight over the following twelve months.

The shape of the case: a roll-up strategy can buy growth, but it also buys each brand's channel risk. Phase Eight's department-store dependence, inherited at acquisition, became the group's impairment a decade later.