Via the AFR:
Shareholders in beleaguered Specialty Fashion Group have taken out their frustration on the board as chief executive Gary Perlstein outlined plans to close almost one third of the retailer’s stores and rationalise brands.
The showdown followed a profit warning last month, a worse than expected $8 million loss in 2017 and a mooted takeover offer from Al Alfia Holdings, an investment company controlled by the Qatari royal family, which never eventuated.
SFG, which owns Katies, Rivers, City Chic, Millers Fashion Club, Autograph and Crossroads, warned last month that December-half earnings were expected to fall by half to between $14 million and $17 million and full year EBITDA would be between $14 million and $20 million, compared with underlying EBITDA of $26 million in 2017 and $60 million in 2010.
SFG plans to close 300 stores on ‘hold over’ leases by 2020, reducing its footprint to about 700, while accelerating investment in e-commerce.
Mr Perlstein said 159 of the 300 stores slated to close were losing money – about 30 per cent more than in past years – despite attempts to reduce rents and cut costs. Most of the loss-making stores are under the Crossroads and Autograph stores, where more than 10 per cent of sales have migrated online.
Some jobs on the chopping block there.
