Theo Fennell topples into red
EXCLUSIVE jewellery firm Theo Fennell yesterday blamed its previous management for losing £3.3m on a series of failed projects and dragging the business into the red.
The group posted a pre-exceptional loss of £2m for the year ended 31 March, compared to a profit of £1.9m the year before.
And a series of ill-judged expansionary plans, at a time when the outlook for luxury goods was weakening, forced the group to also announce a £1.3m writedown.
Barbara Snoad, who stepped in as chief executive of the jeweller in May, said: “A lot of money went into aborted projects and failed moves into fragrance. It’s not about copying other peoples’ success – it’s about our own strengths.”
On Snoad’s appointment she immediately reinstated founder and jeweller Theo Fennell as creative director, who walked out in February 2008 due to a disagreement with the previous management.
Chairman Peter Hambro said: “With Theo Fennell back on board we shall re-engage with loyal clients who, during his absence, have had little to do with the business.”
The departure of Fennell meant the business was forced to move into other sectors, introducing a fragrance line and selling watches in concessions in a bid to diversify the business.
The group’s London Westfield store closed within months of opening at the beginning of this year.
Despite the losses, Snoad said she was confident of turning the business around: “It’s going to be about concentrating on costs. We’re going back to basics and selling jewellery.”
The group said it would launch a new range in the next two weeks.