Luceco plc announces forthcoming closure of US business

Luceco, the London-headquartered manufacturer and distributor of LED lighting products, wiring accessories and portable power products, has announced the forthcoming closure of its US business.

In 2017, the Houston-based business delivered revenue of £4.2m and an operating loss of £1.9m.

One-off closure costs are estimated to be approximately £2m but will be cash neutral. The business is expected to cease operations in Q3 2018.

John Hornby, CEO of Luceco, commented: “Our US business was one of six new markets opened in the last five years as part of our strategy of international expansion.

“Whilst this strategy has been overwhelmingly successful and our new businesses in Europe, Mexico and Asia are delivering rapid revenue growth and market share gains, the US has proven a more difficult market to penetrate.

“We have therefore taken the difficult decision to prioritise our other, more compelling international growth opportunities.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →