Is now the time to buy these 3 British FTSE 250 legends that have fallen on hard times?

If reports are to be believed, Burberry (LSE:BRBY) will soon join the FTSE 250.

That's because its share price fell in July after the company gave a trading update for the 13 weeks ending June 29, 2024. Like-for-like sales were down 21%, compared to the same period last year. Japan was the only place where income increased.

Another concern, the company warned that this trend continued until July, and if it continues the operating loss will be recorded in the first half of this financial year. As a precautionary measure, the board has decided to freeze dividends.

What worries me the most is that its share price started falling long before this bad news was released. As recently as April 2023, the company's shares were changing hands at 2,609p. Today (2 September), I can buy one for 668p.

But I don't want to.

The company's shares look cheap – they trade at a historical price-to-earnings ratio of less than 10 – and its newly appointed CEO has an impressive CV. But I fear there may be more bad news to come.

A sad decline for a famous Britsh brand that has been around since 1856.

Now it will join Dr. Martens (LSE:DOCS) and Aston Martin Lagonda (LSE:AML) in the second tier of listed companies.

Both of these have seen better days.

Too big for its boots

In April, Dr. Martens issued its fifth profit warning since the company's IPO in January 2021. Its share price has fallen more than 80% since then.

Due to weak demand in the US and inflation, it warned that – in a worst-case scenario – profit before tax for the year ending 31 March 2025 (FY25) could be one-third of its FY24 level.

Giving a glimmer of hope to shareholders, the company added: “there are also cases where the benefit can be much better than this“.

But there is too much uncertainty for me to want to part with my money.

Despite being a popular brand, the company seems to have lost its way. Inflation took its products away from working class roots. In fact, some of its boots sell for over £200.

In an effort to reverse its decline, the company decided to change its CEO. And it started a cost-cutting program.

But until I can make sure it's selling shoes that people want – at a price they're happy to pay – I'll take this one out.

Strength. It is driven.

Aston Martin Lagonda was founded in 1947 after the merger of two famous car companies. Since then, it has seen several ownership changes, which could be a sign that no one knows how to make a profit.

The company made its stock market debut in October 2018. Throughout its 2019-2023 fiscal year, it recorded losses. During this period, its accumulated loss before tax was £1.24bn. That's slightly above the company's current market cap.

Apart from this, Aston Martin produces beautiful cars and has won many 'cool brand' awards. And its prestigious customer base includes the likes of the royal family and James Bond.

But the inevitable result of a company that continues to lose money will be the need for more capital. For this reason alone, I don't want to invest.