LONDON (ShareCast) - Lambert Howarth needs more funds from shareholders to implement a drastic restructuring of its homewares division after losses piled up last year.

The shoe supplier slumped £16.8m into the red in 2006 as sales dived from £88.2m to £62.7m. Lambert says the homewares division lost £10.4m in total last year and trading in this financial year has not demonstrated that it can be turned into profit within a reasonable timeframe.

It is in discussions with shareholders and potential new investors regarding a fundraising to help restructure its homeware arm and refocus on its shoe business. In the absence of such a fundraising, the group may not be able to operate within its existing bank facilities, it said, adding that its banks are supportive at present.

Trading so far in 2007 has seen the slow recovery experienced in the second half of 2006 continue. Sales of core footwear and accessories in March and April have met management's expectations and the order book is healthy, chairman Alfred Vinton said.

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