Chocolate shops to shut
DERBYSHIRE FIRM HIT BY COVID:
CHOCOLATE maker Thorntons, which is based in Derbyshire, plans to close all its retail stores following a tough trading year because of the coronavirus pandemic.
The company, which has a factory in Somercotes, has issued a statement on its website saying it had taken the “difficult decision” to go into full consultation to start the permanent closure of shops.
The company, which has a branch in Derby’s Derbion Centre, as well as others across Derbyshire, plans to continue online.
It is understood more than 600 employees are at risk of redundancy under the plans, which affects 61 Thorntons-owned outlets.
Adam Goddard, retail director at Thorntons, said: “Like many companies, we have been operating for a long time in a tough and challenging retail environment.
“However, changing dynamics of the high street, shifting customer behaviour to online, the ongoing impact of Covid-19 and the numerous lockdown restrictions over the last year – especially during our key trading periods at Easter and Christmas – has meant we have been operating in the most challenging circumstances.
“Unfortunately like many other retailers, the obstacles we have faced and will continue to face on the high street are too severe. Despite our best efforts, we have taken the difficult decision to go into full consultation to start the permanent closure of our retail store estate.
“We understand that this will be an uncertain and concerning time for our colleagues and we will actively support them during this period.”
Mr Goddard continued by saying that the company has to change with customers as they choose new ways to shop. He added: “We have seen a strong growth in our online presence with a 71% increase in net sales over the last year and this will remain a key strategy for us. In addition, we continue to invest in building our brand in the grocery channels with our partners in order to meet the demand from our loyal customers.
“We are also continuing on our journey to produce more assortments for the international market through our Alfreton factory.
“We remain committed to this iconic British brand and will continue to invest further in the future potential of Thorntons to ensure we evolve with the times.”
Mr Goddard added that the consultation to review the Thorntons-owned retail estate had started and will review approximately 603 roles.
He said: “We will actively support all of our colleagues who are affected through individual consultations. We accept that we will have to consider redundancy and we will continue to support our colleagues with enhanced redundancy and outplacement support, including one-to-one career coaching.
“All impacted colleagues will also have the opportunity to apply for vacancies at our Greenford and Alfreton sites and, if successful, we will provide relocation support where needed.”
The company was first established in Sheffield in 1911 but has been owned by Italian firm Ferrero since June 2015.
In 2016, the company reduced shops and staffing because of a £30.8 million loss, although sales and production have increased since.
The obstacles we have faced and will continue to face on the high street are too severe. Retail director Adam Goddard