According to a report by Australia’s “Financial Review” on January 9, as John Johnston officially took over the clothing and footwear group Fusion Retail Brands, the company that was already in trouble suffered losses again. Johnston, 96, is best known for developing vacuum cleaner retail business Godfreys. In order to avoid the company’s collapse, the clothing retail group formerly known as “Colorado” has set a cost target for this fiscal year. The group plans to close 40 unprofitable stores by the end of July this year, lay off employees and renegotiate contract negotiations. It is reported that the group has no plans to sell its brands in the short term.
Fusion blamed the latest group losses on tough trade conditions, soaring financial costs and A$132.6 million in debt due to unfulfilled contractual obligations and the expiration of short-term working capital loans. These losses highlight the pressure faced by many retailers, with the Productivity Commission finding that more than a quarter of retail companies are losing money. According to a recent report from the regulatory authorities, Fusion’s losses in the last financial year dropped to AU$36.7 million from AU$108.2 million in the previous financial year. In the year to July 26 last year, Fusion had net debt of A$121 million and revenue fell to A$200.4 million from A$216.5 million the previous year.
CouperFinance, run by Johnston, became Fusion’s holding company on Christmas Eve last year. It is reported that it currently holds more than 80% of the company’s shares, with the remaining shares held by Japan’s Nomura and other small financial firms. Institutional holdings. According to the annual report released this week, Fusion has been able to continue to gain a foothold in the industry “by relying on its ability to generate sufficient capital through its operating activities and the continued support of Cooper Financial.”
