Target and Kmart ‘merger’ could prevent goodwill write-downs

 In Australia, KMart, NewZealand, Target
The "merger" of Target and Kmart may save Wesfarmers from having to write down its struggling department store chain by as much as $800 million, denting bottom-line profits.
Industry sources believe Wesfarmers may consolidate the balance sheets and cashflows of Kmart and Target after creating a new department store division headed by long-serving Kmart boss Guy Russo.
Kmart’s strong cashflows would offset declining cashflows from Target, negating the need for major goodwill impairments when Wesfarmers tests asset values at the end of the financial year. Sydney Morning Herald – Read more…

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