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Premier Retail likely to shut 50 non-viable outlets
27
Jul '11
About 50 non-viable outlets of Premier Retail Group in Australia and New Zealand may be required to shut down if they fail to turn profitable, as they are approaching renewal of their leases.

Retail brands like JayJays, Dotti, Just Jeans, Peter Alexander, Jacqui-E and Smiggle are all owned by the company.

Based on a strategic review conducted by the company's newly appointed CEO Mark McInnes, Premier Retail declared at the Australian Securities Exchange that it will close around 50 non-viable outlets in Australia and New Zealand on the expiry of their lease.

While the firm has not disclosed the details regarding which particular outlets or brands are being considered for likely closure, it said that the closure would not take place all of a sudden.

The stores are spread over different locations. Hence, at some places, the lease might be extended after renegotiating it for lower costs, while at other places the stores would have to be shut down, the company said.

According to the review, in spite of the fact that the New Zealand and Australian retail sector is passing through difficult times, the Group still has the potential to regain its growth potential over time.

The six point 'EBIT improvement plan' for the Group incorporates revival of its five core apparel labels and a group-wide 100-point cost-efficiency programme.

As per the company's estimates, its earnings before interest and tax for the current year is likely to come to around US$ 64-66 million, and would probably rise to US$ 80-95 million next year.

Fibre2fashion News Desk - India

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