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This case study has been developed as a teaching vehicle for the explanation of some of the key concepts of Relationship Marketing. It describes the changing fortunes of Laura Ashley Holdings Plc, an international furnishings and fashion retailer and manufacturing concern. The case follows newly appointed Chief Executive, Jim Maxmin's attempts to revive the business through the application of Relationship Marketing. It describes how customer retention and profitability were first improved through a careful review of the core product, supported by enhanced customer service: facilitated by changes in human resource management, closer relationships with suppliers and the effective application of database marketing. An operational catastrophe, however, disrupted the recovery plans, revealing shortcomings in the management of relationships with several influential parties, without whose co-operation Maxmin's long-term strategic plans were unlikely to come to fruition.