The Swedish hardware, home and leisure store retailer Clas Ohlson has announced plans to close all of its UK stores, putting 150 jobs in jeopardy.
The 100-year-old Swedish brand that also sells a range of toys and games, including licensed lines and RC toys, revealed that it was continuing to see significant losses in the UK.
After reporting an operating profit drop of 74 per cent to £2.88 million, the retailer said it would close its loss-making stores in the UK, and four loss-making stores in Germany.
It still trades from 227 stores across Norway, Sweden and Finland, and sales outside of this region reportedly only account for three per cent of sales.
“After 10 years, the business in the UK is continuing to incur significant losses despite measures in recent years to optimise the store network,” Clas Ohlson chief executive Lotta Lyra said.
The retailer predicted a one-off cost from the store closures of £18.3 million, but it expected a positive effect on earnings of £6.5 million after the stores are closed.
The retailer currently stocks a host of popular toy brands including Meccano, Fingerlings, Silverlit, arts and crafts kits, games and more.