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Home Entertainment Specialist In Recovery Mode

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, June 23 NZPA - Home entertainment retailer Eastern Hi-Fi told shareholders today it was " not out of the woods yet" but was making progress on its financial recovery and hoped to make an announcement soon.

"The year was spent trying to restructure out of the position in which we found ourselves at the end of 2006 ," chairman Rick Bettle said.

"We have reported the breach of a banking covenant as a result of the losses and are relying on the continued support of the ASB in terms of our banking facility which in turn is reliant on us completing a satisfactory restructure of the business. "

The NZAX-listed company made a net loss $955,156 for the year to December last year, 10 percent less than the previous year.

New chief executive Vaughan Winiata said the company had closed three of its seven stores and two were under review. The stores are in the North Island.

It had reduced overall costs, cut staff and pulled monthly expenses down by an average $80,000 compared to 2007.

The company had also increased wholesale activity, and reorganised brands. Mr Bettle said Ms Winiata's initiatives in supplying products to Dick Smith, JB Hi Fi and other major retailers had been "the difference between where we are today and where we were heading".

Shares in Eastern Hi-fi were unchanged today at 15c.

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