Losses at Thorntons, one of the UK’s biggest high street chocolatiers, have increased by over £7m ($8.8m), according to its latest figures.
Owned by Ferrero, Thorntons went further into the red with a deficit of £38.3m in the year to August 31, compared with £31.1m the previous year.
A Ferrero spokesperson told ConfectioneryNews: “We are proud of the long-term investment we are making in Thorntons. Since Ferrero acquired Thorntons in 2015, we have invested £30m to develop the Thorntons business in manufacturing, retail, e-commerce and our integration systems and continue to do so. We continue to be committed to transforming Thorntons and ensure we maintain and grow the iconic and much-loved brand.”
After rolling out a string of store closures and restructuring, the company was hit by £2.3m in one-off costs and sales also fell by 3.3% to just under £140m, partly attributed to the decline in the UK’s high streets in general.
“Our newly remastered Thorntons Continental range has grown in the last two years by 17.8%. Overall, we can see clear indications that our business is rebuilding and consumer love for the brand remains as strong,” the spokesperson said.
“The latest financial results continue to reflect the consolidation of the Thorntons relationship with major retail customers with that of Ferrero UK Ltd, a challenging retail environment, together with a continuing and significant financial investment in the reshaping of different areas of the business. Thorntons is a valuable part of the UK business, and the results reflect our strong commitment to its continued growth.”
Thorntons was founded in 1911 by Joseph William Thornton and has 121 stores across the UK.
