Bosses at jeweller to the stars Theo Fennell today launched a stinging attack on their predecessors after the firm racked up losses of more than £3 million.

Chief executive Barbara Snoad, who rejoined the firm in May this year having left in December 2007, said bad decisions while she was away, as well as the recession, were to blame for the losses.

But new chairman Rupert Hambro also conceded that trading has not improved since the change of leadership and “the company has not yet turned the corner”.

Snoad said aggressive expansion overseas under her successor Pamela Harper, and the move away from jewellery into perfume and other products, saw business evaporate.

Snoad also said the departure of founder Theo Fennell, who left in February 2008 but was brought back in June this year as creative director, was disastrous.

“Theo, thank god, is back where he should be,” she said as she promised a “back to basics” strategy. “Design dried up for a year and the offer became very limited,” said Snoad.