Reject Shop told to come clean

BILLIONAIRE packaging mogul Raphael Geminder has hit back at his takeover target The Reject Shop following its Christmas trading update, demanding the struggling retailer provide full details of its sales performance for the holiday period.

The Reject Shop provided a sales update on Monday where it reconfirmed its already low- ered profit outlook and stated that sales had held up during Christmas.

Allensford, the investment vehicle Mr Geminder is using for his $78 million bid for the discount retailer, yesterday said the trading update provided a first half net profit figure in isolation, was incomplete and had no detail on first half sales or costs.

“Allensford asks The Reject Shop (TRS) to disclose the composition of NPAT (net profit after tax), as both sales and costs are fundamental indicators of the health of the business and the appropriateness of the TRS board’s strategy,” it said in a statement.

“In order for TRS shareholders to be fully informed when making a decision in re- lation to Allensford’s offer, it is imperative for the TRS board to disclose whether an asset impairment is imminent.

On Monday, The Reject Shop said it expected net profit for the six months to December 31 to be roughly $10.5 million. It also reaffirmed its previous recommendation that shareholders reject Allensford’s offer of $2.70 a share.