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Closures at Findel in debt battle
02.04.09
Home shopping and education supplies firm Findel is closing its loss-making Cotswold Company and Letterbox businesses as it looks to stem losses.
It will write off £17.6 million against the two brands. Cotswold sells country furnishings while Letterbox is a direct competitor to Mothercare's Early Learning Centre.
Two years ago, the shares were worth more than 750p, valuing the company at £640 million. Today, they were at 79.5p, with the firm worth just £67 million — a blow to investors that include Schroders and F&C.
Findel Direct, once the fourth-biggest mail order company in Britain, is also being shut, leading to further writedowns of £6 million. Chief executive Patrick Jolly says the move will “improve the cash performance of the business with the aim of helping to reduce debt”.
