Tie Rack plans more US closures

TIE RACK is to close more American shops this year as part of efforts to tackle losses in its US operation. The scarf and tie retailer yesterday announced a pounds 350,000 provision to cover the closure of four outlets last year and another three in 1994, writes Russell Hotten.

As a result operating losses in the US increased from pounds 58,000 to pounds 482,000. But the performance of most American shops was improving, said Roy Bishko, chairman, and profitability at divisions elsewhere in the world increased.

Taxable profits in the year to 30 January rose 31 per cent to pounds 6.67m on turnover of pounds 78m, up 17 per cent. Capital expenditure, which doubled last year to pounds 3.2m, will reach about pounds 4m in 1994 with a programme to add another 30 outlets to the existing 301. The shares fell 8p to 146p.

Britain remains Tie Rack's most important market. Nigel McGinley, chief executive, said Christmas trading had been satisfactory but the first quarter was tougher than expected. The dividend is 1.75p (1p).