Thorntons deepens retail gloom with news of store closures

• Thorntons to halve its portfolio of 364 stores • Chief exec blames ‘significant changes’ in consumer behaviour • Carpetright profits slump 70% • Jane Norman and Homeform have gone into administration More than 10,000 jobs are now at risk across the UK retail sector as Thorntons announced the closure of up to 180 stores on Tuesday, threatening around 1,000 jobs. Carpetright also added to the gloom, axing this year’s dividend and warning that it sees “no respite” from the challenges that have forced several high street names into administration in recent weeks. Thorntons plans to almost halve its portfolio of 364 UK stores. Some 120 will definitely close over the next three years, as their leases expire, and a further 60 could also be shuttered. The move comes less than two months after Thorntons suffered its second profits warning of 2011 . At the time, the company blamed the unusually sunny Easter. On Tuesday, chief executive Jonathan Hart said Thorntons needed to close stores in response to “significant changes in consumer shopping behaviour”. He admitted that the high street was suffering badly. “Our goal is to refocus the business across all channels and seek to deliver industry competitive returns 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,” said Hart. Under Hart’s strategy, Thorntons will attempt to find a franchisee to run stores which it closes, although it admitted this will not be possible everywhere. Floorings chain Carpetright told its shareholders that consumer demand was weak across its markets, with profits slumping by 70% to £6.6m. It also hinted that stores will close. “With leases on 94 stores in our estate due to expire in the next five years, we have ample opportunity to reshape the portfolio, reduce the size of store footprints and lower our ongoing rent roll,” the company said. The store closures at Thorntons mean that more than 10,000 UK retail workers have been hit with the threat of unemployment in the last week. On Monday, womenswear chain Jane Norman fell into administration, leaving its 1,600 staff facing an uncertain future. Discount department store chain TJ Hughes, which employs around 4,000 staff across its 57 shops, filed an intention to appoint an administrator. Homeform, the owner of Kitchens Direct, Dolphin Bathrooms and Moben Kitchen, went into administration last Thursday . It employs 1,300 people across its 160 showrooms, and also uses the services of 1,500 self-employed fitters and designers. A further 750 jobs are at risk at Habitat, with restructuring firm Zolfo Cooper trying to find a buyer for its 30 stores outside London . Thorntons Retail industry Job losses Graeme Wearden guardian.co.uk

Posted by on June 28, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.