RNB RETAIL AND BRANDS LAUNCHES RATIONALIZATION PROGRAMS
RNB RETAIL AND BRANDS is launching a number of Group-wide rationalization
programs. The programs include a comprehensive review and coordination of all
core functions within JC and Brothers & Sisters in order to implement the
rationalization of these positions as well as an additional ten central Group
functions. Furthermore, preparations will begin for the closure of Sisters and a
wind-down of the Kosta Outlet operations.Â These measures are expected to be
completed in the current fiscal year and to have a positive impact on both
earnings and cash flow of at least 40 MSEK from the 2013/2014 fiscal year
The weak sales and earnings development in the last fiscal year has resulted in
a difficult financial situation for RNB RETAIL AND BRANDS. In light of this, the
company, following the end of the first quarter of the fiscal year, has decided
on a number of measures to further rationalize operations. The aim is that these
measures will noticeably contribute to increased profitability and cash-flow.
The measures include a comprehensive review of all central services within the
business areas JC and Brothers & Sisters as well as preparations for closing the
Sisters concept. At the same time, an additional 10 positions, spread out over a
number of other central Group functions, will be made redundant. In total this
will effect 30-35 full-time positions. The aim is that all these activities will
be completed during the current fiscal year. The positive impact on both
earnings and cash flow are expected to amount to at least 40 MSEK from the
2013/2014 fiscal year onwards.
A wind-down of the Kosta Outlet operations is also initiated in the context of
the rationalization program. Kosta Fashion Outlet is a part of the business unit
Departments & Stores and the operations include a brand outlet with a total
retail area of more than 5000 square meters. Operations in the business unit
Department & Stores will thereby be streamlined to only include the current
operations at the department stores NK Stockholm and NK Gothenburg. The
liquidation is expected to be completed in the current fiscal year.
- Dissatisfying sales development for JC and Brothers & Sisters, and to some
extent Polarn O. Pyret, has contributed to the group showing weaker than
expected earnings, resulting in increased financial pressure. In order to
counter this development, create financial security and continue our company-
wide change program, these measures are absolutely necessary. It is unfortunate
that employees are affected but the reality of our situation requires actions
that will result in a rapid and noticeable improvement.
- Despite a generally weak market development, our operations within Departments
& Stores have been stable. This development is driven by efficient operations at
NK Stockholm and NK Gothenburg. The decision to initiate a wind-down of our
Kosta Outlet operations should be viewed in light of our commitment to focus our
resources within Departments & Stores to further develop our profitable
operations at the NK department stores, says Magnus HÃ¥kansson.
For further information, please contact:
Magnus HÃ¥kansson, CEO, RNB RETAIL AND BRANDS AB,
+46 8 410 520 02, +46 768 87 20 02,
e-mail: Â email@example.com
The information is such that RNB RETAIL AND BRANDS AB (publ) is required to
disclose in accordance with the Swedish Financial Instruments Trading Act and/or
the Swedish Securities Market Act. The information was submitted for publishing
on January 16, 2012, at 08.13 a.m.
RNB RETAIL AND BRANDS owns, operates and develops fashion, clothing,
accessories, jewelry and cosmetics stores that focus on providing excellent
service and a world-class shopping experience. Sales are mainly conducted in
Scandinavia through the three store concepts Brothers & Sisters, JC and Polarn
O. Pyret, as well as through shops in the department stores NK in Stockholm and
Gothenburg. RNB RETAIL AND BRANDS has operation in 10 countries. RNB RETAIL AND
BRANDS has been listed on the OMX Nordic Exchange since 2001.
RNB RETAIL AND BRANDS LAUNCHES RATIONALIZATION PROGRAMS:
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Source: RNB Retail and Brands AB via Thomson Reuters ONE