In the late 1970s, he co-launched the fashion chain Warehouse, as well as continuing to work as a freelance designer. After it was taken over by retail chain Sears, he was sacked for being disruptive in board meetings – which he never regrets. In 1979 and 1981 Banks became British Designer of the Year, and in 1980 he was made "British Coat Designer of the Year". During the mid-to late 1980s, he designed a large proportion of the stage-clothes for musician Howard Jones.