Davies set to extend Asda deal

GEORGE DAVIES is understood to be about to sign a pounds 1m-a-year deal which will tie him to the supermarket chain, Asda, for another three years.

Mr Davies joined Asda after being ousted from Next, the clothing chain he built up from nothing in the 1980s. He is believed to have rejected a number of approaches to leave the group. The Asda chief executive, Allan Leighton, said to be a strong supporter of Mr Davies' approach, has set a sales target of pounds 1bn a year for Mr Davies' clothes label, George, which sells through Asda stores. Sales are currently pounds 500m.