THE parent company of Oxfordshire-based Fired Earth has ordered a review after the tile and kitchenware division lost £2m.

Aga Rangemaster, which bought Fired Earth in 2001 for £30m, said overall revenues increased by five per cent to £123.4m, but declined at Fired Earth, despite a positive response to the new free catalogue, the ‘Tile Basics’ tile campaign and the fitted kitchen launch.

Chief executive William McGrath said: “Despite more, but smaller orders, the business continued to make losses.”

A detailed review has led to the appointment of an experienced retail interim managing director to head an operation “sharply focused on an expanded core tile and paint range”. Designer Charles Smallbone is .

“These steps are designed to eliminate the losses which are expected to be around £2m,” said the ompany. The plans will be in place by the end of 2010.

The group as a wholereturned to profit in the six months to June 30 but said it did not expect to see a substantial rebound going forward as consumers were still extremely cautious about committing to larger value purchases.