Gareth Hutchens
April 3, 2012
The Age
Franklins owner and grocery wholesaler Metcash will shed 478 jobs as it restructures its business in response to difficult trading conditions.
The company said it would merge several of its operations into one business to end duplication and improve efficiency.
That would lead to 478 redundancies from its Campbells, merchandising and fresh food businesses.
Chief executive Andrew Reitzer said the job losses were regrettable, but the reality of the trading environment meant Metcash had to focus on ensuring the business was structured for the future.
”These difficult conditions result from continued deflation which is pushing prices and margins down, and a value-conscious consumer who increasingly purchases on discount,” Mr Reitzer said in a statement.
The business restructure would result in a one-off charge of $34 million to $43 million, to be included in Metcash’s results for fiscal 2012, which ends on April 30.
Metcash has maintained its guidance for low to mid single digit underlying earnings per share growth in the year to April.
The restructure will result in the establishment of Metcash Food and Grocery, which will combine the company’s IGA Distribution, Merchandising, Fresh and Campbells businesses.
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