The dry cleaning chain Johnson has blamed last year’s smoking ban in pubs and clubs for its fall in profits.
The dry cleaning business saw profits fall by 80% to £400,000 in the six months after the smoking ban was introduced, quite a dramatic decrease I think you’ll agree. Johnson’s are putting this down to customers’ clothes no longer reeking of stale smoke after a night out.
The smoking ban that came into effect in July 2007 has also harmed business at pub chains.
Johnson‘s has said: ‘The smoking ban has now been effective for over 12 months and…this has impacted dry cleaning volumes.’
The firm has issued a number of profit warnings after worries about rising levels of debt.
To reduce the amount of costs, the firm has sold its corporate clothing division, which made uniforms for Sainsbury’s and Argos.
Johnson’s adds: ‘We are now well positioned to seize commercial opportunities but unfortunately we are not immune to weaknesses in the UK economy, which continues to be difficult.’