Hotel Chocolat has seen profits melt away as it counts the cost of the pandemic.
The chocolate maker and retailer reported a pre-tax loss of £7.5m for the year to 28 June, compared with a profit of £14.1m the year before.
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Image: Hotel Chocolat said impulse purchases fell
It was dragged into the red after writing down the value of assets by £10m due to the “current disruption”.
Sales had been up by 14% in the first half of the year, but tumbled by 14% in the second half, which included the key Easter period when stores were closed.
Overall for the year, revenues grew 3% to £136.3m.
Chairman Andrew Gerrie said: “Having delivered a strong first-half performance, the second half of the year was materially disrupted by COVID-19 and the related restrictions, which led to the closing of all UK retail locations for 12 weeks, and the shutdown of our factory for eight weeks.”
More recent trading showed how sales have shifted online, with digital demand up 150% over the summer.
Meanwhile, the company has closed five sites in commuter locations due to reduced footfall.
Changing face of retail under coronavirus
It said there had been a drop in “impulse” sales, particularly in London.
The group said it was in discussion with landlords “to find collaborative solutions to the ongoing disruption”.
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Chief executive Angus Thirlwell told Sky News most were “in the bag” and rents had been paid for September but that other property owners were “not getting it”.