Hotel Chocolat Group PLC (AIM:HOTC) said it has decided to cease US direct-to-consumer sales via its website and exit the in-country warehousing and fulfilment support arrangements.
The company said it continues to explore the future development of wholesale opportunities in the US market.
In a trading update on July 19, 2022, Hotel Chocolat had announced that investment levels in the US would be materially reduced, with ongoing investment limited to essential working capital only for online and wholesale.
The upmarket chocolate retailer warned in the July update that its balance sheet was significantly affected by the cost of closures in the US.
It said it expects to report a statutory loss for 2022 “predominantly as a result of non-cash impairment provisions and costs arising from discontinued activities including the closure of retail stores in the USA”.
Hotel Chocolat now operates just one store in the US that is anticipated to close next year, and now it will cease selling products online across the Atlantic.
Its exit from the US market follows a swathe of retailers that have headed over the Atlantic and failed to make their mark.
In afternoon trade in London on Monday, shares in Hotel Chocolat were 0.4% higher at 137.50p.