Damas shuts doors on Italian jewellery unit

Jewellery group Damas International said on Tuesday it will shut its Italian unit, Stefan Hafner SPA, after its shareholders voted to wind down the loss-making unit.

Damas took over Stefan Hafner, which has flagship stores in Dubai and Moscow as well as locations in Madrid, Barcelona and London, in 2004 and held an 87-percent stake.

"The shareholders have decided to go for voluntary winding up in order to prevent further losses," Damas said in a statement.

Dubai Nasdaq-listed Damas shares were down 0.3 percent, having fallen as much as 13.5 percent earlier in the day.

The UAE firm said the Italian business recorded a loss of 4.2 million euros in its audited balance sheet of December 2008.

Damas said Stefan Hafner accounted for less than 2 percent of its total revenues in 2008/2009. The jeweller said it had booked adequate provisions against the losses in its fiscal year-end results in March, 2009.

Stefan Hafner also designs and distributes jewellery under the Iosi, Porrati and Nouvelle Bague trademarks.