Church’s has undergone a major restructure after the Prada-owned UK luxury footwear brand saw its sales continue to plummet in fiscal 2023, down 24%, following bigger declines in the previous two years.

However, post-restructure, which involved job cuts and store closures, the company said it has now succeeded in returning to a £7.9 million pre-tax profit, reversing a £24 million loss in the previous year.

Revenues had fallen by £3.3 million to just over £10 million last year, latest accounts seen by The Telegraph show. But Church’s sales had crashed to a 40-year low after the pandemic, down by almost £50 million in 2021 and 2022 combined.

Accounts showed staff numbers fell steeply last year, to 138 from 244 in 2022, with many of those casualties centred at its Northampton factory and offices.

Church’s blamed its post-Covid woes on a steep decline in visitors to the UK from Asia, hindered by the removal VAT-free shopping for tourists post-Brexit that saw many of its customers choosing to shop in places like Paris and Milan instead.

But directors were more upbeat in the trading statement, saying: “Moving into 2024 with all restructuring complete, it’s expected that return in trading profits and net assets will return favourable results.”