The Thorn Group, who operates Radio Rentals and the Rentlo business in Australia, is set to quit the Big Brown Box online operation due to poor sales. It is not known whether the group will sell the site or simply close it down.
The Thorn Group, who operates Radio Rentals and the Rentlo business in Australia, is set to quite the Big Brown Box online operation due to poor sales. It is not known whether the group will sell the site or simply close it down.
In a statement issued to the ASX today the company said that difficult trading conditions, poor sales and the uncertainty of the market had led to the decision.
Overall Thorn has reported a 38% rise net profit for the 6 months to September 30th due to increased demand for rental products via their Radio Rental and Rentlo operations.
The company said that there is potential for far better returns from other operations than what the Big Brown Box was delivering. As a result the Company has raised their profit guidance $19 million to between $21 million and $22 million for the full year ending 31 March 2010.
John Hughes Managing Director of the Group said, “This pleasing profit outlook is the result of a consistent performance across the business, particularly Radio Rentals/Rentlo which continues to deliver good gains in new customers along with consistently low levels of customer arrears and bad debts.”
