Thorntons and Carpetright to shut branches
HIGH street chocolate seller Thorntons and carpet retailer Carpetright yesterday warned they will both shut more branches in a bid to trim costs and stay afloat.
Thorntons, which gave a profit warning in May, said a minimum of 120 shops would shut, with the possibility of an extra 60 closures. The group currently has 227 shops, all run by franchises.
Chief executive Jonathan Hart said: “Our goal is to refocus the business across all channels, and seek to deliver industry competitive results over the next three to five years.
“Although we see the prospect of weakness in high street footfall and consumer sentiment continuing, I am confident that this strategy is right.”
The group said it will also ramp up its online sales, and try to move away from being dependent on Easter and Christmas offers.
Carpetright has already shut 27 of its shops in the year to April, and said more of its 559 outlets were in the firing line for closure this year.
The firm, which has issued two profit warnings in the past 12 months, said group revenues fell six per cent to £486m in the year. Underlying profit was down 40 per cent to £17m.