Upmarket jeweler Theo Fennell said on Friday it was expecting a full-year loss after posting a 21% fall in Christmas sales and that it was now working on downsizing the business.
The company, whose customers include David Beckham and Elton John, said it has agreed with Harrods not to renew its contract to run the luxury department store’s watch counter, although the contract for Theo Fennell jewelery counters has been extended for three years.
AIM-listed Theo Fennell, which had put its expansion plans under review in December, said the downsizing measures will “significantly reduce the company’s borrowing requirements.” “Given the restructuring referred to and the focus on the Theo Fennell brand, the company anticipates an improved performance for the year ending March 31, 2010,” the company said in a statement.
It added it remains in talks regarding a third party making an investment in Theo Fennell via new equity. Seymour Pierce had forecast a pre-ex pretax profit of £1.2 million (about $1,8 million) for the year to end-March 2009. At 9:20 a.m. shares were indicated down 3% at 15 pence. (Reuters)