* Says Brown Thomas store to take over watch concession * Co's commercial director resigns (Adds details)

Feb 26 (Reuters) - British upmarket jeweller Theo Fennell Plc (TFL.L) said on Thursday it would close its Fine Jewellery and Watch concession in the Brown Thomas Department Store in Dublin after it had unveiled its plans to downsize its business last month.

www.TheoFennell.com

The AIM-listed company, which had put its expansion plans under review in December, said Brown Thomas would now take over the direct operation of the Watch concession.

Theo Fennell said its Commercial Director Justine Carmody would resign from the board and join Brown Thomas in April as head of Jewellery and Watches. On Jan. 16, the company, whose customers include David Beckham and Elton John, had said it agreed with Harrods not to renew its contract to run the luxury department store's watch counter, although the contract for Theo Fennell jewellery counters were extended for three years.

Many UK retailers, including fashion retailers, are struggling as consumers curb spending and go down market due to higher fuel, food and mortgage costs amid recession.

Theo Fennell shares, which have lost more than 80 percent of their value over the last 12 months, closed at 12.5 pence on Wednesday, while the FTSE All Share General Retailers Index .FTASX5370 closed at 1091.41 points. (Reporting by Tresa Sherin Morera in Bangalore; Editing by Gopakumar Warrier)