Shoe Zone PLC (AIM:SHOE) intends to close an undetermined number of stores that have become “unviable” amid “very challenging trading conditions”.
Weakening consumer confidence has slashed Shoe Zone’s revenues and profits this year, the company said in a Wednesday trading update.
Higher national insurance and National Living Wage costs under the Labour Budget have compounded these issues, said the group.
As a result, profit before tax for the year ahead is expected to be half of what was previously estimated.
To keep a stable cash position, Shoe Zone will not be paying a dividend.
Unsurprisingly, Shoe Zone shares collapsed more than 40% in opening Wednesday trades.