GRAINCORP’S patience with its merchandising arm appears to be running out, with the company announcing it will close eight of its GrainCorp Merchandise outlets.
The eight stores to close are Goondiwindi in Queensland, Trangie, Narromine, Coonamble, Junee and Hillston in NSW, and Warracknabeal and Charlton in Victoria.
The merchandising division of GrainCorp announced losses of $23 million for the full year to September last month, primarily on the back of write-downs in chemical and fertiliser inventory.
There will be ten redundancies in all as a result of the closures, nine of them in the field, and one corporate position.
The closures are consistent with GrainCorp chief executive officer Mark Irwin’s tough talking stance at the annual results announcement – and there could be more in store.
The store closures do not mean the end of possible changes within the merchandising division.
A strategic review into the income stream is currently being conducted, with further announcements into the ongoing operation likely either tomorrow or Monday.
There is strong speculation there will be further changes at a number of GrainCorp’s stores, although not necessarily closures. A GrainCorp spokesman said the company was unable to comment until the announcement was made.
Email a friend