Home shopping retailer Findel has decided to shut down its Cotswold Company and Letterbox brands after the completion of its strategic review.
In February the retailer said that it would review the “ongoing viability” of the two brands. It decided that it would shut down both brands with immediate effect.
It will also axe the central administration functions of its cash with order businesses, Findel Direct. It will be incorporated in to its existing home shopping business.
The strategy will benefit the retailer to the tune of £8m in slashed trading losses and costs. Impairment charges of £9m and £8.6m will be written off in the period ending April 3 for The Cotswold Company and Letterbox respectively.
About £6m of further write-downs will be made against Findel Direct. The cash cost of the strategy was less than £1m.
Chief executive Patrick Jolly said: “This action is in line with our strategy of improving the cash performance of the business with the aim of helping to reduce debt. We remain confident of achieving our strategic cash generation plans by our target date of March 2011.”