Forminster shares suspended

Concerns over the future of AIM-listed fashion retailer Forminster deepened this afternoon as trading in the company's shares was suspended.

The shares were suspended at 3.45pm because the company has still failed to secure the renewal of Forminster's franchise to operate the Kookai fashion brand in the UK.

Forminster, which has a market capitalisation of£1 million, has seen its share price collapse since the start of the month when the doubts over the Kookai franchise emerged. The shares have been suspended at 3.75p, having fallen more than 50 per cent during December.

The franchise agreement between Kookai and Forminster expires on New Year's Day. In a statement, Forminster said: 'the trading position of the company from 1 January 2006 is highly uncertain.'