This section discusses the ongoing financial struggles of The Warehouse Group, a major retailer in New Zealand. It includes the following key points:This section discusses the ongoing financial struggles of The Warehouse Group, a major retailer in New Zealand. It includes the following key points: 1. The Warehouse Group is facing job cuts as part of a restructuring plan. 2. Over 1000 staff members in the head office are affected. 3. The restructuring will not impact frontline staff members in The Warehouse and Noel Leeming stores. 4. The company’s financial performance has been declining, with a 6-7% decrease in sales and a significant drop in earnings before interest and taxes (EBIT). 5. The Warehouse Group has sold off some of its businesses, including Torpedo7 and TheMarket.com, and posted a $24 million loss in the six months to January. 6. The former chief executive, Nick Grayston, resigned in May.
The financial strife facing one of our biggest retailers continues.
1News can reveal staff The Warehouse Group’s head office have been told jobs are on the line and a restructure will be announced next week.
Over 1000 people work in the head office.
Just how many jobs will be lost as part of the redundancies is not known.
“We have let our teams know that we will be proposing changes to our organisational structure next week,” a spokesperson for The Warehouse Group told 1News.
“This redesign will not affect any frontline team members and is about shifting our focus to our brands and driving our performance.”
Staff in the stores owned by the brand – including The Warehouse and Noel Leeming – will not be affected.
Employees will be told the details of the restructuring on Tuesday.
It comes amid ongoing struggles at The Warehouse Group, which was focusing on its core brands The Warehouse, Warehouse Stationary and Noel Leeming.
Late last month it revealed it was expecting sales from continuing operations to be 6-7% lower than the prior year, and earnings before interest and taxes (EBIT) to be in the range of $22 million to $30 million, compared to $83.4 million in the prior year. This excludes the loss from discontinued operations and any potential restructuring costs.
“Retail across New Zealand is under pressure, and we are no exception,” interim chief executive John Journee said at the time.
The Warehouse Group posted a $24m loss for the six months to January.
Nick Grayston resigned as chief executive in May.
In February, it sold Torpedo7 for $1 and TheMarket.com has recently closed.
