By Patrick Avenell
Harvey Norman has today revealed the Clive Peeters and Rick Hart stores in acquired in July 2011 lost just over $41 million over the last 12 months of trading. Harvey Norman announced earlier this month that these stores would either be closed or rebranded to Harvey Norman or Joyce Mayne.
“The consolidated result for the Clive Peeters and Rick Hart brands for the year ended 30 June 2011 was a loss of $41.07 million before tax,” said a spokesperson. “This loss reflects investment costs in attempting to rebuild the damaged Clive Peeters and Rick Hart brands.”
These investment costs included higher advertising and promotion spends, implementation of a new computer business and costs associated with implementing the stores into the Harvey Norman network.
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The former Clive Peeters stores that have closed are in Bendigo, Dandenong, Malvern and Thomastown in Victoria. The closed Rick Hart stores, all in Western Australia, were located in Mandurah, O’Connor and Osborne Park.
Click here for news on Harvey Norman's 9 per cent increase in profit after tax.
Click here for the products Harvey Norman predicts will be profit centres in the year ahead.
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