Struggling fashion house French Connection has given up on its plan to be big in Japan — it is shutting all of its stores in the country.

The company's Japanese arm is on course to make a loss of £2.5 million this year, forcing bosses to consider an overhaul.

Late on Friday the company slipped out a stock exchange announcement saying that it would “close all of its 21 stores” in Japan over the next six to nine months.

French Connection made a loss of nearly £13 million in the six months to the end of July.

Stephen Marks, the founder and chief executive, had earlier identified Japan as a particularly troubled part of the empire.

He said in the statement: “I believe Japan continues to be an important market and presents a good opportunity for French Connection in the future. We will be maintaining brand presence in the market through our e-commerce offer.”

Closing the stores will cost £500,000.

French Connection has been struggling for some time. Critics of the firm say the clothes are too expensive.

The shares rose 1p today to 46¼p.