Kingfisher to shut British home-improvement stores

Kingfisher, Europe's biggest home-improvements retailer, said Tuesday it would close 60 stores in Britain and Ireland, a day after pulling out of a takeover for French chain Mr Bricolage.

British group Kingfisher, which owns the chains B&Q and Screwfix in Britain as well as Castorama and Brico Depot in France, said it would close the stores over the next two years at a restructuring cost of £350 million ($517 million, 481 million euros).

Neither the exact locations nor number of planned job losses were disclosed.

"Kingfisher has said for some time that B&Q UK & Ireland can adequately meet local customer needs from fewer stores and that some of the stores should be smaller," the group said, while revealing the departure of B&Q chief executive Kevin O'Byrne.

It was announced also that Kingfisher's annual profits had dropped 19 percent to £573 million.

"The results for the year reflect a mixed picture across our markets with the UK market improving but continental Europe, particularly France, proving to be a more challenging environment," the company said.

"However, our ongoing focus on cash and tight capital discipline meant we were able to continue to invest in the business whilst maintaining a strong balance sheet, pay £234 million in annual cash dividends and return a further £200 million to shareholders via special dividends and share buy backs."

In reaction to the announcements, Kingfisher's share price surged 4.74 percent to 382.10 pence, topping London's benchmark FTSE 100 index, which edged up 0.08 overall.

Its shares had rallied also on Monday after Kingfisher said it had pulled out of a deal to buy Mr Bricolage in the absence of regulatory approval.