Thorntons to close stores (From Bradford Telegraph and Argus)

Thorntons to close stores

10:30am Thursday 16th February 2012 in Business By Telegraph & Argus

Struggling chocolate retailer Thorntons is to slash its branch network from 344 to around 200 stores and focus its operations in ‘substantial’ retail locations after seeing half-year losses slump below £1 million.

The retailer, which has branches in Bradford, Keighley and Skipton, is counting the cost of a poor Christmas performance. The group’s own-store sales were down by 5.5 per cent on a like-for-like basis in the 28 weeks to January 7, and margins were hit by rising raw material costs.

Underlying profits were down 61 per cent to £3.1 million, including nearly £2.5 million of charges to cover loss-making stores. Thorn-tons reported bottom-line profits of £618,000 for the six month period.

It scrapped its half-year dividend, but chief executive Jonathan Hart insisted that Thorntons’ strategy was the right one after he unveiled plans last year to close at least 120 stores and drive more business through supermarkets and commercial channels.

He said: “These results and the economic climate only reaffirm the need for change.”

The company, which employs 3,000 staff and has more than seven per cent of the UK chocolate market, ended the period with 344 stores after closing 20 outlets as their leases expired.

It envisages an estate of between 180 and 200 stores.