Fantastic Furniture, Freedom, and Snooze parent company Greenlit Brands lost $287 million over the course of the 2019 financial year due to restructuring costs, as well as losses from operations.

The household goods group recorded a revenue of approximately $1.07 billion, but suffered massive losses on discontinued operations of almost $125 million, and continued operations of almost $164 million. 

The group recently offloaded its general merchandise division, including Best & Less, Debenhams, Postie, and recently collapsed Harris Scarfe, to private equity firm Allegro Funds. 

The sale left Greenlit Brands with 319 stores and more than 3000 employees across Australia and New Zealand. 

Michael Ford, Greenlit Brands’ executive chair and group chief executive, said the transaction would return the business to its roots as a household goods group.

“[The divestment leaves us] with a ladder of brands with demonstrable integration and as always, striving for our ambition to achieve remarketable retail,” Ford said. 

Allegro funds appointed administrators and receivers for Harris Scarfe earlier this month, and announced 21 stores would be closed down as part of the administration process. 

“All efforts are being made to redeploy affected staff around the rest of the store network, and all staff that leave the business will receive all wages and entitlements in full on the closure of individual stores,” said Deloitte restructuring services partner Vaughn Strawbridge. 

“Going forward, we certainly remain focused on running the broader store network, and selling the business as the best outcome for remaining employees and suppliers.”

Inside Retail has contacted Greenit Brands for comment.