Jan 16, 2009
Jeweller Theo Fennell downsizes after Xmas slump
Jan 16, 2009
* Christmas sales down 21 percent
* Now sees full-year loss
* Not to renew contract to run Harrods watch counter
* Shares indicated down 3 pct
LONDON, Jan 16 (Reuters) - British upmarket jeweller Theo Fennell (TFL.L) said on Friday it was expecting a full-year loss after posting a 21 percent 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 jewellery 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 pounds ($1.78 million) for the year to end-March 2009.
At 0920 GMT shares were indicated down 3 percent at 15 pence. (Reporting by Victoria Bryan; Editing by Rosalba O'Brien)
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