JB Hi-Fi has announced that it will be restructuring its Clive Anthonys business following a strategic review of the business.
Expected to cost JB Hi-Fi $33.4 million, Clive Anthonys currently has ten stores with forecast revenue for the financial year of 2011 at a mere $140 million.
According to JB Hi-Fi, this move is necessary following “several years of disappointing returns” and advised that there would be “further deterioration in 2011 half year sales and earnings”.
“JB Hi-Fi will look for opportunities to improve our performance at each of these ten store locations,” the company said.
“The options under active consideration include rebranding to JB Hi-Fi stores, repositioning the stores or exiting certain locations.”
Separately, the company also announced that it will be making an off market buy-back of up to 10 per cent of its shares on issues, representing approximately $170 million.
As a result, it has confirmed its guidance for its underlying net profit after tax for the financial year of 2011 will be between $134 million and $139 million.