Great Universal Stores said on Wednesday that it will part with Burberry to refocus on its own group structure and let the London fashion House develop on its own. The 66% stake owned by GUS in Burberry and worth nearly 2$ billion will be transferred to GUS shareholders.

"The board has decided that it is appropriate to demerge Burberry later this year to give our investors a direct interest in Burberry's exciting future," said Victor Blank, chairman of GUS, in a statement Wednesday. It has also been announced that the demerger will take place later this year, without providing a specific time frame.

A Burberry spokesman told WWD: "This is very much a logical step for Burberry, following the partial flotation of the company in 2002."

Last week, Burberry announced the rise of its profits for the fiscal year ended March 31 explaining it with the tight cost controls, pricing and sourcing gains and fewer markdowns.