Thorntons axes 120 shops

Troubled chocolate retailer Thorntons dealt a further blow to the high street today by announcing plans to close up to 180 stores in a move affecting up to 750 staff.

The group said it will exit at least 120 outlets over the next three years as their leases expire, while it will also consider the future of an additional 60 shops over the same period.

The plan will leave Thorntons with around 180 to 200 company-owned stores, although in the majority of locations it hopes franchisees will open outlets nearby. These are generally expected to be Thorntons concessions inside existing stores such as gift shops with some sort of co-branding of the Thorntons name on the shop front.

New chief executive Jonathan Hart said: "We will do everything we can to try to retain the staff involved. We closed 16 this year and did a very good job retaining those staff affected."

The cuts come little more than a month after a profit warning blamed unseasonally warm weather over Easter for a shortfall in chocolate sales.

Despite the recent rash of closures, Thorntons is still operating from 364 stores - not far off its peak of 400 - which analysts say is simply way too many to supply the demand from customers.

However, the Thorntons news is the latest blow to the high street after the failure of chains such as Habitat and Oddbins in recent weeks.

Discount department store TJ Hughes is set to join the list of failed retailers today after it reportedly filed a notice of intention to appoint an administrator.

Chains such as HMV, Game and JJB Sports, which have long been the mainstay of UK high streets, are also slimming down their store estates. And Mothercare said recently that it would axe 110 shops in order to focus its trading on out-of-town locations.

The Thorntons review also aims to make the business less dependent on seasonal events such as Christmas and Easter by increasing the number of gifts it sells.

Mr Hart said the strategy was the right one because he sees the current weakness in high street footfall and consumer sentiment continuing.