A Malaysian conglomerate is coming to the rescue of troubled fashion retailer Laura Ashley by pumping nearly £44 million sterling into the group and becoming a major shareholder.

As part of the deal, Malayan United Industries (MUI) will take a 40 per cent stake in the former stock market star which has plunged into the red and seen its share price plummet.

The long awaited rescue package follows a boardroom shake-up last November which saw Ms Ann Iverson ousted as chief executive after failing to turn the company around.