Spar chain Eat 17 has been forced to close its wholesale business and Hammersmith store due to poor financial performance, while also selling and leasing back its Walthamstow site.

The closures were revealed in the premium convenience chain’s annual results for the year ending 31 March 2023. In the results, founder James Brundle said: “Our primary focus has been on streamlining our business operations and consolidating our resources to maximise profitability.

“During the period, management identified that the wholesale and Hammersmith side of the business were performing below budget. Post year end, these sites were closed and by aligning our efforts towards the most successful sites, we have positioned ourselves to concentrate on optimising their performance and facilitating sustainable growth.”

The closure means the firm has three sites in Walthamstow, Hackney and Bishop’s Stortford. Eat 17 added the sale and leaseback of the Walthamstow site during the financial period had allowed it to “maximise financial benefits and facilitate a reduction in overall debt.”

For the year, the firm experienced losses of £643,000, compared to profit of £295,226 in the previous year. Turnover was also £7.6m, compared to £8.8m in the previous 12 months.

Update

Despite the closures, Brundle told Better Retailing the firm’s latest trading period ending April 2024 was on track to be more profitable with earnings before interest, tax, depreciation and amortisation reaching £650,000.

The poor financial performance in the previous year was attributed to a “hangover” from the pandemic as performance at Eat 17’s remaining sites were more positive. Brundle said: “2023 was a year of consolidation and none of it was planned on our end. Historically we’ve performed well and we’ve reset after covid.

“2024 is on track to be an excellent year and we’re attracting better business to our remaining sites. For example, we’ve got nine street food businesses and a tattooist at Bishop’s Stortford now. We’re focusing on local suppliers at Hackney and Walthamstow, taking and implementing what we’ve learned from the street food element at Bishop’s Stortford.”