LOSS-MAKING clothing group Austin Reed has invested millions of pounds in 13 discount stores across the UK.

Winston Churchill's favourite suit maker has opened sites across England, Scotland and Ireland, including a store at Dalton Park retail centre, off the A19, at Murton, east Durham.

The North Yorkshire-based group, which has Austin Reed and CC - formerly Country Casuals - clothing divisions was yesterday unable to say exactly how much it had spent.

A spokesperson said: "The outlets look at an alternative way to market our products to customers who aspire to Austin Reed but have a more limited budget."

Last year, the company reported that losses had narrowed to £1.1m in the six months to August 13 and that sales had picked up one per cent in the seven weeks to October 1.

However, like-for-like sales at its CC division showed a 15 per cent fall.

Last month, the group said growth in like-for-like sales at its main chain had risen to 2.7 per cent in the 15 weeks to January 14.

Trading at CC was also better, with same-store sales down 10.5 per cent during the 15 weeks.

At the time, Seymour Pierce analyst Richard Ratner cut his forecast for annual group losses from £2m to £500,000.

The company announces full year financial figures in April.

Law firm Watson Burton, which has offices in Newcastle, handled the expansion of the discount stores for Austin Reed.

The sites, at major outlets in towns and cities including Manchester, Doncaster, Kent and Castleford, were all completed at the end of last year.

Austin Reed, which has its headquarters in Thirsk, sells clothes and accessories throughout Europe, North America, Japan and Asia.

The Austin Reed brand is sold through 47 stores and 39 concessions in the UK including Harrogate, York, Thirsk, Darlington, and Newcastle.