Crown employees may soon get out of Chinese jail
COLLINS Foods, Australia’s largest KFC franchisee, is expanding with the acquisition of a further 28 KFC restaurants in Tasmania, South Australia and Western Australia from Yum Brands for $ 110 million. The acquisition will lift the number of KFC restaurants operated by Collins Foods to 223. Collins Foods will fund the acquisition through a $ 44.1 million offer of new shares and $ 69.3 million in debt facilities. Collins Foods yesterday also posted a 3.9 per cent fall in net profit for the year to April 30, down to $ 27.99 million. Samestore sales in the KFC Australia business were up 0.7 per cent, compared with 3.1 per cent a year earlier. During the year, the company opened seven new restaurants in Australia and one in Germany and acquired 13 in Australia and 12 in Germany. OUTGOING Metcash chief Ian Morrice says he is leaving the food and grocery wholesaler with a balance sheet that provides it with the firepower to move on future growth opportunities.
Metcash had also been proactive in building a sustainable business at a time of “unprecedented” upheaval in the grocery sector, Mr Morrice said.
The Scotsman ( pictured) yesterday announced he would leave Metcash – which supplies supermarkets under the Independent Grocers of Australia banner and owns Mitre 10 and Home Timber & Hardware – by the middle of next year after fiveyears in the role.
The announcement came as Metcash, which has struggled in an increasingly competitive supermarket space, delivered a better- than- expected profit haul and resumed paying dividends.
“It’s the right time,” Mr Morrice said of his retirement.
He has implemented a $ 750 million turnaround strategy at the group, cutting costs, introducing “price matching” on everyday grocery items at participating IGA stores and helping owners refurbish their outlets.
Other key decisions have included buying Home Timber & Hardware from Woolworths and selling Metcash’s automotive division, which included the Autopro, Autobarn and Midas chains.
Mr Morrice nominated a strong balance sheet – its net debt has been cut from $ 275.5 million to $ 80.8 million – and the ability of independent retailers to invest and upgrade their businesses as key achievements. THREE Australian employees of Crown Resorts could be released from a Chinese jail within months after being handed nine and 10- month sentences for gambling related offences in a Shanghai court.
James Packer- controlled Crown will pay $ 1.7 million in fines on behalf of 16 employees after 19 current and former staff pleaded guilty to charges of illegal promotion of gambling on the Chinese mainland at a hearing yesterday.
Crown confirmed its head of international VIP gambling, Australian Jason O’Connor, was sentenced to 10 months in jail and fined RMB2 million, or $ A390,000.
Australian- Chinese dual nationals, Jerry Xuan and Jenny Pan, received sentences of nine months imprison- ment and were also fined $ 78,000 and $ 39,000 respectively.
“Of the 16 defendants who were fined, 11 were also sentenced to a period of incarceration of nine months and five to a period of 10 months, with time in detention since 14 October 2016 to be taken into account for all,” Crown said.
Australian Consul General in Shanghai Graeme Meehan told media after the hearing that the three Australians convicted would have little time left to serve. The employees were taken into custody by Chinese authorities last October but were charged this month.
“Crown remains respectful of the sovereign jurisdiction of the People’s Republic of China and does not intend to comment further at this time,” the casino operator said yesterday.