OUTDOOR clothing specialist Berghaus boosted turnover but saw its losses mount as it had to write off a “substantial” debt when Blacks Leisure collapsed last year.
Sunderland-based Berghaus, part of the Pentland group, reported sales of £56m in the year to the end of December 2011, up from £55.6m a year earlier.
But operating losses grew from a loss of £0.4m to £6.9m during the same period.
The company said that given the state the UK economy, it expected another “challenging” year ahead.
But brand president, Richard Cotter, said: “Berghaus continues to grow as a global brand. With the backing of our owner, the Pentland Group, we have invested in the people, product development and marketing that will allow this company to become one of the world’s leading outdoor brands.
"The UK market has been very challenging and has clearly had an impact on our immediate turnover and profit but that merely validates our drive to develop our international markets. Our underlying business is very robust, consumer demand for Berghaus is higher than ever and we are growing internationally."