Thorntons records retail loss

Thorntons loss-making retail outlets have led to sharp declines in pre-tax profits despite strong trading. The company has recorded a £1.1 million loss in the 12 months to June from a £6.1 million profit the year before.

The firm, which is marking its 100th anniversary, will tackle the causes by shutting stores over the next three years. Falling high-street sales have dropped by another 8.9% to £118m in the past year in its own shops.

In contrast, chocolate sales through supermarkets and other outlets soared by 26% to £78.8m. The company said profits before tax and exceptional charges totalled £4.3 million. “We will be incurring one-off charges over the next three years as part of our store closure programme,” says Thorntons chief executive, Jonathan Hart. “We’re at the start of implementing our plans which will transform profitability from here on.”