performance of Christmas retail sales is uncertain.

HA&E Smith Ltd. may be on the verge of selling off a US subsidiary in Alexandria, Virginia that traded in gifts and ladies wear.

President of the company, Roger Davidson, said it had been increasingly difficult to manage from so far away.

He said, "The return for what investment, time and equity we had in it was tough. After we moved in the area, the size of a competitor on the corner was doubled and the new Pentagon Mall was installed, all within a few miles.

"That made it very difficult to trade in the upper market we were in. "The deal has not closed yet. The potential buyers are conducting due diligence, right now.''