DEEPER INTO THE RED FOR SPECIALTY
THE company behind a clutch of Australian fashion chains including Rivers, Katies and Millers says a proposed buyout by Qatar’s royal family is now unlikely to go ahead.
And weak consumer spending will continue to take a toll on sales, according the group, Specialty Fashion.
But in a ray of sunshine, Rivers is finally making money – the first time it has turned a profit since it was hoovered up by Speciality Fashion four years ago.
The retail group, which also owns the City Chic, Crossroads, Autograph and Katies chains, revealed yesterday that it fell deeper into the red during the year to June, with an $8.4 million loss. This was nearly four times the $2.2 million loss of the previous year.
The blowout was largely due to $7.4 million in one-off costs related to the closure of six stand-alone City Chic stores in the US.
Shares in the Sydney-based group plunged in the wake of the revelation yesterday, closing 23.1 per cent lower at 35¢.
Specialty Fashion had been in talks with investment company Al Alfia – which is controlled by the Qatari royal family – after receiving an indicative $135 million bid.
But chief executive Gary Perlstein said that there had been no “active discussions” since February. The takeover was thrown into doubt after the death of the sole shareholder’s father, former Qatari ruler Sheikh Khalifa bin Hamad al-Thani, in October.