Hellaby Holdings says it has decided to write off all the $29 million of goodwill in its footwear retailers, Hannahs and Number One Shoes.
The investment company says the performance of the two chains in the last two years has been below expectations.
Hellaby says that, despite the write-down, which is non-cash, it will calculate its dividend as if no impairment had occurred.
It says earnings grew strongly in the year ended June and the outlook is positive for this year.
Hellaby says, excluding the write-off, it expects to post an operating profit either in line with, or slightly ahead of, its May guidance of about $54 million and a net profit of about $25 million.
Managing director John Williamson said the footwear stores are still trading profitably. "At a group level we are maintaining, or reaffirming, our profit guidance which we gave in May."