Thorntons joins retail casualty list
Published: 28 June, 2011
Chocolate retailer Thorntons has become the latest retailer to admit it is struggling. It is to close up to 180 stores
The company said 120 stores would close over the next three years , with another 60 possibly to follow. It said it hoped to replace the company-owned stores with franchised operations. Thorntons currently trades from 364 company stores and 227 franchised outlets.
Thorntons' announcement follows the collapse of Homeform – which trades as Moben and Dolphin – as well as fashion chain Jane Norman and homeware store Habitat. Liverpool-based department store group TJ Hughes, which has 57 UK stores, has also said it intends to appoint administrators.
Jonathan De Mello, head of retail consultancy at CB Richard Ellis, said: "With a recent spate of retailer administrations and profit warnings over the past week, it is clear that the retail sector - the UK's second largest private sector employer - is going through troubled times. What is particularly pertinent about these recent administrations is the fact that the vast majority of these retailers trade in the household or bulky goods sector. This mirrors the continued lack of liquidity in the housing market and highlights low consumer confidence overall, as shoppers cut back on spend on discretionary items.
“The housing market is a 'leading indicator' of wider economic issues, and as such could ultimately affect retailers trading in other sectors, such as fashion. Given this, one can only hope that the recent demise of Jane Norman is not the start of a wider spate of high street casualties, as seen post Lehman Bros in 2008.”
