Marks & Spencer has been condemned to a second straight year of falling profits after the high street giant racked up a huge bill for store closures, as it prepares to shut 100 shops over the next four years and faces relegation from the blue chip FTSE 100 index.
The high street staple’s pre-tax profits plunged 62.1% to £66.8m for the year ending March 2018, largely impacted by £321.1m of costs linked to shutting underperforming shops.
The group on Wednesday said it would take exceptional charges of more than £320m to cover the cost of shutting stores and expects to incur another £150m of charges as its closure programme rolls on according to the FT.
The dismal update came just a day after the company said it would call time on 14 stores, putting 872 jobs at risk in a move that will see 100 shops close by 2022.
The Independent adds that the retailer could fall out of the index next Tuesday, if its own share price falls further or if a number of other smaller companies hovering just below the top 100 increase in value. Ocado, GVC and Weir Group are all in the running to move up.
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