Insurance bill takes toll at retailer N Brown

Retailer N Brown’s profits have slumped after the company was forced to pay out millions in compensation to customers over its flawed insurance products.

Pre-tax profits at N Brown, whose brands include JD Williams and Jacamo, fell 72 per cent to £16.2 million.

The company reported a £56.9m provision related to store closures, and a £40m pay-out to customers in compensation payments.

The products, provided by a third party insurance underwriter, were sold to customers between 2006 and 2014.

For the year ended 3 March, 2018, group revenue rose a shade under 4 per cent from £887.7m to £922.2m.