31 Oct 2012

Retailer posts third annual loss

4:35 am on 31 October 2012

High-end Wellington retailer Kirkcaldie & Stains has reported its third consecutive full year loss, which it blames on higher insurance and funding costs.

The company lost $773,000 for the year to the end of August, compared with a $56,000 loss in the previous year.

Revenue fell 3% to $34 million, and the company says it has entered into a conditional agreement to sell its Harbour City Centre in Wellington.

The agreement is conditional on due diligence and shareholders' approval.

The company says the rest of the details are confidential.

Due diligence is expected to be completed by 14 November.

Last month, Contact Energy committed to a nine year lease in the Harbour City Centre.

The building was valued at $46.5 million last year.

Kirk's shares rose 65 cents to $3.25 each on Monday - when the building sale was announced - but dropped 30 cents to $2.95 when the financial results were posted on Tuesday.