Radio New Zealand - Te Reo Irirangi o Aotearoa

Banking breach expected by retailer

Updated at 12:23 pm on 29 July 2010

Red Group Retail says it's likely to breach two of its three banking commitments in late August, because of the tough trading environment.

The private equity owned company owns the Whitcoulls, Borders and Augus & Robertson book retail chains in New Zealand and Australia.

Red Group Retail says it expects gross earnings of about $A25 million in the year to the end of August, compared with interest costs of about $A9 million.

It has started talks with its financiers to get a temporary waiver of its banking convenants.

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