InDaily

Adelaide's independent news

Get InDaily in your inbox. Daily. Subscribe

Metcash hit with $352m impairment in SA

Business

Metcash will be hit with a $352 million impairment charge after one of its customers shunned its new South Australian distribution centre.

4 Comments
4 Comments Print article

The IGA and Foodland supermarkets supplier says the charge consists of $318 million of goodwill and other intangibles and $34 million of other net assets, but will not impact its debt facilities or ability to undertake capital management initiatives.

Metcash last week flagged a potential $270 million sales hit after Drakes Supermarkets said it would not commit to Metcash beyond the June 2019 end of the parties’ current South Australia agreement.

Last week Drakes announced it had received council planning consent to build a new $80 million distribution centre in Adelaide’s north, which it says will create up to 250 ongoing jobs.

The centre, to be located on a 17-hectare site in Edinburgh North, will create 300 jobs during construction and an additional 120 to 250 ongoing full-time positions once the centre is open in June next year.

Drakes general manager Bob Soang said at the time that the new centre would be “the most advanced independent distribution and logistics centre in the state”.

– with AAP

We value local independent journalism. We hope you do too.

InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to become an InDaily supporter.

Powered by PressPatron

Comments

4 Show comments Hide comments
Will my comment be published? Read the guidelines.

More Business stories

Loading next article