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Brazin to exit incubation retail fashion concept
23 Aug '05
2 min read
Pakenham, Victoria based retailer Brazin Limited advises that, following a further review of its Footwear and New Business Development Divisions, a decision was made for an orderly exit from the continuing non performing brands of Ghetto & Insane.
Ghetto will rationalise approximately 24 non performing stores and sell the remaining 13 stores as a profitable operation. The store rationalisation programme will be through a combination of lease assignments and closure of a small number of stores. Brazin is also exiting its incubation retail fashion concept brand trading as Insane. The brand has 17 stores.
As a result of the poor performances of Ghetto and Insane and the decision to exit these businesses, the Company is taking up a once off significant charge in the Company's 2005 result of no more than $5 million. In addition, there will be a further charge of approximately $2 million to be taken up in the 2006 financial year. As the exit programme progresses the Company will be in a better position to firm up the financial impacts for both financial years.
There is no material adverse cash flow impact to the group from the divestments. The rationalisation of non performing operations will allow the Company to focus on its successful core Entertainment (Sanity, Virgin, and EzyDVD) and Apparel Divisions (BNT) and to drive the growth strategies for the newly acquired dusk and Diva brands, all of which continue to trade at or above expectations. The Company's 2005 result will be announced on 23 August 2005.
Brazin Limited is a publicly listed company and operates some 668 retail stores Australia wide. Its brands include Sanity Entertainment, Virgin entertainment, BNT (Formally Bras n Things), Aztec Rose, Ghetto, Dusk, Diva, Insane and Ezydvd. The Brazin group was founded in 1980 with the opening of a music store in Pakenham, Victoria by its majority shareholder, Brett Blundy.
Ghetto will rationalise approximately 24 non performing stores and sell the remaining 13 stores as a profitable operation. The store rationalisation programme will be through a combination of lease assignments and closure of a small number of stores. Brazin is also exiting its incubation retail fashion concept brand trading as Insane. The brand has 17 stores.
As a result of the poor performances of Ghetto and Insane and the decision to exit these businesses, the Company is taking up a once off significant charge in the Company's 2005 result of no more than $5 million. In addition, there will be a further charge of approximately $2 million to be taken up in the 2006 financial year. As the exit programme progresses the Company will be in a better position to firm up the financial impacts for both financial years.
There is no material adverse cash flow impact to the group from the divestments. The rationalisation of non performing operations will allow the Company to focus on its successful core Entertainment (Sanity, Virgin, and EzyDVD) and Apparel Divisions (BNT) and to drive the growth strategies for the newly acquired dusk and Diva brands, all of which continue to trade at or above expectations. The Company's 2005 result will be announced on 23 August 2005.
Brazin Limited is a publicly listed company and operates some 668 retail stores Australia wide. Its brands include Sanity Entertainment, Virgin entertainment, BNT (Formally Bras n Things), Aztec Rose, Ghetto, Dusk, Diva, Insane and Ezydvd. The Brazin group was founded in 1980 with the opening of a music store in Pakenham, Victoria by its majority shareholder, Brett Blundy.
Brazin Limited
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