Hobbs losses widen to £15.6m as it takes turnaround action

Losses had widened from £14.1m after Hobbs conducted an expensive review, leading to the retailer paying out exceptional costs of £5.8m. The review resulted in the business closing five stores and four concessions. Redundancies cost the retailer £534,000.

Sales at Hobbs increased from £111.7m to £112.1m in the 12 months to January 31, 2015, according to documents filed at Companies House.

During the year Hobbs also made management changes, appointing John Lewis buying director Meg Lustman as chief executive, replacing Nicky Dulieu who resigned in April. In January, Hobbs hired former Phase Eight buying and merchandising director Claire Pearl to the same role at its business.

Hobbs said the results of the review were implemented in the second half of the year, with performance improving in the fourth quarter as the spring/summer collection arrived.

The retailer said it has boosted footfall and sales across its core stores and website and is increasing conversion rates.