The swing during the year to July 31 last year was caused mainly by exceptional expenses of£94.7 million, relating to the write down of an intercompany loan. Turnover was also down£12.6 million to£219.3 million over the period, while operating profit was£2.8 million, down from£5.8 million the previous year.
The retailer said: 'The company experienced a difficult retail market and this is reflected in the results for the year. Although the retail environment has remained challenging since the year-end, the management team has recently been strengthened and is starting to deliver operational improvements. In addition, on April 1, the company's parent completed a refinancing exercise that significantly strengthened the balance sheet.'
The retailer had a major board shake up, in which the chief executive, brand managing director and finance directors were replaced in February. At the time, incoming chief executive Dean Murray pledged to invest further in the business, to improve stores, branding and product. The size of the investment is believed to be in the region of£10 million.
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