Woolies R500m hiding

AUSTRALIA: SET TO IMPAIR GOODWILL ARISING FROM POLITIX ACQUISITION

- Moneyweb

Still smarting from its disastrous acquisition of department store David Jones, Woolworths will write down the value of another of its Australian businesses by around R500 million.

This was buried in the fullyear profit warning it released this week, in a rather technical distinction between the earnings per share decline with or without this once-off impact.

It says it will impair the value of goodwill of its Politix brand, which is part of its Country Road Group business. It exists alongside the Country Road, Trenery, Mimco and Witchery brands.

It acquired the Politix menswear retailer in 2016 under thenCEO Ian Moir (who was also the architect of the David Jones acquisition in 2014).

At the time, Moir said: "The acquisition of Politix is a logical acquisition that will deliver value for WHL's shareholders.