The Italian firm behind Ferrero Rocher chocolates and Nutella spread has agreed to buy British chocolate retailer Thorntons for £112m, according to Reuters.

Thorntons has been hit in recent years by the rise of newer and upmarket brands such as Green & Black’s and Hotel Chocolate, says the report.

It has had some success selling chocolates through other outlets while closing some of its own stores, but after a profit warning in December its chief executive of four years, Jonathan Hart, is stepping down.

Analysts said Thorntons was a good fit for Ferrero, which has strong, premium brands but no retail platform to showcase them.