Freedom Furniture, Plush and Fantastic Furniture owner Greenlit Brands posts $288.5m loss

Fantastic Furniture. Picture: Justin Brierty

Greenlit Brands – the company that owns Freedom Furniture, Plush and Fantastic Furniture – has posted $288.5m loss for the year ended September 29, according to its private company accounts just lodged with the Australian Securities and Investments Commission.

The total comprehensive loss for the year was despite a slight increase in revenue from continuing operations, which came in at about $1bn.

It also suffered a fall in its underlying earnings before interest, tax, depreciation and amortisation to $49.58m.

The result comes after Greenlit Brands sold its General Merchandise business, which includes Best and Less and the now collapsed Harris Scarfe, on December 2 to Allegro Funds Management.

It also comes after the group’s parent company, Steinhoff International, faced near collapse in the past three years and in a 12 month period in which Australian retailers have been hit hard by a weak economy and persistently difficult trading conditions.

Discontinued operations, including the General Merchandise division, were responsible for $125m of the losses.

In its annual report, Greenlit Brands, which previously carried the name of parent company Steinhoff International, said it had reduced debt and purchased locally used trademarks from its parent company, and it planned to sell more non retail assets to invest capital into the business and pay down more of its borrowings.

During the year, Greenlit Brands sold non-retail assets, including distribution centre assets which were sold at significant gains to carrying values.

Following the sale of the General Merchandise segment, the group comprises a total of 319 retail stores with more than 3,800 employees across Australia and New Zealand.

The group refinanced its external borrowings with a syndicate of Australian banks extending the tenor of facilities to December 31 and maintaining the normal commercial terms already in place.

Greenlit Brands’ total assets are $994m and its total liabilities are $908m.