Hallenstein Glasson trading difficult, quake impact small

Wednesday 9th March 2011

Clothing retailer Hallenstein Glasson Holdings said trading in the first five weeks of the second half of its financial year has been challenging.

"Group sales are marginally behind the prior year but on a more positive note we have experienced an improvement in Australia," the company said in a statement to NZX.

The retailer is due to report its result for the six months to February 1 on March 24.

It updated trading at the start of its second half period in a statement on the impact of the Christchurch earthquake on its business.

The company said it expected the impact of the February 22 earthquake to be insignificant financially because it had insurance covering both loss of profits and damage.

"We are relieved that none of our staff have been lost or seriously injured although many have suffered destruction of their homes," the company said.

"We wish to record our sympathy to those effected, and also our appreciation for the willing manner in which staff have set about in making those stores that have reopened ready for trade."

The group has six Glassons, six Hallensteins, and two Storm stores in Christchurch. It has re-opened stores in Northlands, Riccarton, Merivale, and Hornby and stores in South City are expected to open shortly.

Stores at The Palms shopping centre remain closed and the status of stores in the central business district remains uncertain.

"Current advice is that it will be some months before they can reopen, but because a full damage assessment has yet to be made this advice is preliminary only," the company said.

It was difficult to gauge the impact the earthquake would have on sales in the Christchurch region longer-term, the company said.

NZPA

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