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Postie Plus to post loss amid 'extremely difficult' conditions

Friday 1st August 2008

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Postie Plus Group, which this week sold its unprofitable Arbuckles chain, will post a loss this year because of difficult trading conditions and costs of the sale.

The full-year trading loss will be NZ$6.5 million to NZ$7.5 million, the retailer said in a statement In addition, it will take a one-time charge of NZ$2.4 million to NZ$2.6 millionmainly to write down goodwill as a result of the Arbuckles sale.

"Aggressive restructuring and extremely difficult trading conditions in the second half" will result in a loss, the company said.

Postie Plus stock fell 2.5% to 39 cents and has declined 45% in the past 12 months. Sales have dropped in each of the first three quarters, accelerating to a 7.5% decline in the latest three months.

Like Warehouse Group and most retailers, Postie Plus's sales have been eroded by a slump in consumer confidence and rising household costs. The company sold its Arbuckles manchester chain to Kathmandu founder Jan Cameron.

By Jonathan Underhill

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