Burberry faces FTSE 100 slide, a further blow to the beleaguered brand

British brand Burberry is to be ousted from the FTSE 100 index.

The troubled fashion firm’s share price has tumbled and it faces eviction when indicative restructuring is announced next week.

Known for its checked prints and trench coats, the label has struggled with disastrous sales due to the slowdown affecting the luxury industry. Shares have fallen 50 percent this year.

The company, now worth £2.5bn, now looks likely to be added to the FTSE 250. Interim changes will be announced on Tuesday and its place will be taken by insurer Hiscox, which is worth more than £4bn. Its shares have risen 21% in the past year.

Burberry’s new boss Joshua Schulman already faces a daunting task.

Shares fell to their lowest level in 14 years last month when boss Jonathan Akeroyd resigned after just two years.

It hired former Michael Kors and Jimmy Choo CEO Schulman and eliminated its dividend.

Wealthy customers have cut back on spending on high-end clothing, such as its £1,900 trench coat, and accessories. Burberry has been tipped as a takeover target.

There are also fears that private equity predators could target the 168-year-old British firm.

Global index provider FTSE Russell says a stock will be delisted if its market capitalisation is ranked 111 or below at the time of the restructuring. Any stock that rises to 90 or above will be admitted. Burberry is ranked 140 in the FTSE 350. Final changes will be announced on 4 September.