BoConcept-fasciaInternational contemporary furniture specialist BoConcept is to overhaul its worst performing stores worldwide by targeting closures or installing new franchisees.

The Denmark headquartered retailer says its review will impact 35-50 stores across the world and could see it exit as many as 10 of the 60 countries in which it operates.

BoConcept says these stores are a drag on profits, with up to 30 of the stores expected to be culled. That would leave around 20 locations — which BoConcept says have the potential to be improved — facing the prospect of new franchisee operators being installed.

The company has 262 brand stores worldwide of which 30 are run at group level. There are also 42 BoConcept studios across the world.

It didn’t specify which countries would be impacted the most by its decision to restructure, though in its accompanying interim trading update its UK business was among those it praised, saying it was delivering consistent like-for-like growth.

BoConcept has 14 brand stores in Britain — 13 of which are run by franchisees — as well as two studios, down from the four it had at the time it filed its first quarter results. Its UK store pipeline remained flat at two potential store openings at its 31st October half year balance sheet date, it added.

The firm said interim sales worldwide were up 6 per cent to DKK 560m, about £59m, with like-for-like order intake rising 9.2 per cent. Half year earnings were hit by a DKK 70m (£7.4m) one-off write-down following its decision to close or restructure stores, with BoConcept registering a DKK 62.8m (£6.7m) operating loss (2013: loss of DKK 5.3m or £560k) for the period.

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