The true extent of problems at High Street fashion chain Hobbs was laid bare today as the fashion firm swung into a loss.
The brand, whose fans include the Middleton sisters and Andy Murray’s girlfriend Kim Sears, suffered a £1.9 million loss for the year to the end of January, according to accounts posted at Companies House. It made a £8.2 million pre-tax profit over the previous 12 months.
The figures come in the wake of private-equity giant 3i, which has a 47% stake, having recently cut the value of its investment by more than half to £21 million, thanks in part to the chain suffering a tough Christmas.
“The disappointing performance was the result of changes to the core ranges, which were not well received,” said the accounts.
“The unseasonal weather was unhelpful but not the principal cause of this underperformance against our expectations.”
Turnover fell 8.2% to £111.7 million while gross margins dropped 0.8% to 62.5% as stores struggled to sell dresses, skirts and tops at full price.
Chairman Phil Wrigley joined Hobbs in January, and in June named Meg Lustman as the new chief executive, replacing Nicky Dulieu who left earlier this year.
Bosses have said sales are now improving under the new management.
