Retail giant, JB Hi-Fi, plans to restructure its Clive Anthonys business following several years of disappointing returns and deteriorating 2011 half-year sales and earnings.
Under the restructure, it will consider options such as re-branding to JB Hi-Fi stores, repositioning the stores or exiting locations. It has 10 Clive Anthonys branded outlets across the country.
As part of the restructuring, JB will book a one-off consolidated pre-tax charge of $33.4 million relating to the Clive Anthonys unit. The charge involves a write down of tangible assets of $13.5 million, intangible assets of $4.6 million, provision relating to property leases of $12.7 million and other items totalling $2.6 million.
The total non-cash impact of the charge is $14.4 million and a residual $19 million relates to cash outflows expected to occur over a number of years.
JB revealed its 2011 financial year guidance with statutory net-profit expected to reach between $108.5 million and $113.5 million. Underlying net-profit will be between $134 million and $139 million.
In other news, Richard Uechtritz and Beth Laughton have been appointed as non-executive directors to the board. Non-executive director, Will Fraser, will retire in September 2011. Fraser has been a part of the board since its IPO in 2003.
Uechtritz was previously the CEO and managing director of JB Hi-Fi until February last year.