Harvey Norman shuts down OFIS chain after just one year

Retail giant Harvey Norman will close its OFIS office supply stores as the downturn eats into company sales.

 

The closures come after last week’s announcement from chairman Gerry Harvey that 10 Harvey Norman stores will close after disappointing first-half results.

“They will be starting to close down now, and they will be closed before the end of June,” Harvey told The Australian. “It’s going to cost too much money, so it’s better to close now, give up.”

Harvey also said he had plans to expand the OFIS chain, but decided to close the business when the first results started to come in. He is unsure as to how many jobs will be lost, as some OFIS employees may be re-hired.

“We wanted to open 100 shops with the concept that we had, but we got to five shops, we looked at it and said this is going to take too long if we ever make it.”

The closer will result in a pre-tax profit loss of between $7 million and $8 million in the 2008-09 financial year.

 

Related stories:

You can help us (and help yourself)

Small and medium businesses and startups have never needed credible, independent journalism and information more than now.

That’s our job at SmartCompany: to keep you informed with the news, interviews and analysis you need to manage your way through this unprecedented crisis.

Now, there’s a way you can help us keep doing this: by becoming a SmartCompany supporter.

Even a small contribution will help us to keep doing the journalism that keeps Australia’s entrepreneurs informed.

Trending

COMMENTS

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments