Thorntons issue festive profit warning
The company reckon it's down to lower orders from supermarkets and some issues at their warehouse.
The usual Christmassy affairs such as advent calendars, chocolate snowmen and Santas and that, have all done well, but customers don't seem to be that bothered about Thorntons regular fare, and as a result have suffered large drops in their usual orders from retailers.
Also, retailers being wary of such things, were all cautious and didn't place their orders until the last minute. The chocolate treat firm have been in the Deathwatch bagging area a lot this year, so it's not good.
They're not the only one, as a survey from advisory firm Begbies Traynor found that up to 135 retailers are in a critical condition, with the quarterly rent day looming on Christmas Day. We'll probably be filling our pages with doom and despair and news of brand managers sticking connecting up the exhaust pipe into their company Mondeo.
Julie Palmer, partner and retail expert at Begbies Traynor, said: “While most families will be reaching for the Quality Street and Celebrations this Christmas, it seems Thorntons is still failing to keep pace with the competition, surprising the market with a profit warning at the worst possible time of year for the struggling chocolatier.”
Quality Street? Pffft. Roses, darling.
Thorntons' chief executive Jonathan Hart, who joined the company in early 2011, has been trying to turn the business around . Approximately 50 shops will be closed by the end of 2016, and a couple of ranges such as Nostalgia and Harry Hopalot for Easter, should help turn things around.
TOPICS: High Street News