Fashion and lifestyle retailer Fatface is closing all 23 of its stores in the US, as it moves its north American operations to an online-only model.
A source close to the business said rising costs and economic uncertainty had made the model unviable. The move will result in 145 job cuts.
Fatface will instead continue to invest in its UK store estate after opening three new stores, refurbishing seven and updating 28 shopfronts this year. It also plans to expand into new international markets with an online offer in the coming months.
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The retailer posted a 21% drop in pre-tax profit to £16.9m in the year to 25 January, which it part attributed to the migration of its ecommerce business to Next’s total platform.
Sales fell 11% from £267.7m to £237.4m, due to the retailer’s larger focus on full-price sales and its “smarter” product proposition across womenswear, menswear and accessories.
Fatface reported its pre-tax profit was up during the first half of its current financial year, boosted by a 6.6% uptick in full price sales and 3.4% increase in like-for-like store revenue.
The retailer trades from 170 stores in the UK and employs around 2,400 staff members.
Fatface declined to comment.
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