Mercury posts bleak result

NATIONAL: The Opes Prime collapse has claimed yet another victim with wholesaler Mercury Brands officially reporting a net loss of $7.8 million for the 2008 financial year.  Mercury Brands, formerly trading as Austin Group, was severely impacted by the collapse of the Opes Prime Group in 2007, with related party Hawkswood Investments having been a significant shareholder of the company.

Receivers for Hawkswood confirmed the sale of Austin Group Convertible Notes to Melbourne-based investment group Albany Capital Investors in June 2008. The total one-off cost related to the Convertible Notes impacted Mercury Brands' full year result by $1.2 million.

Other factors impacting the result were one-off significant fees of $4.03 million, which included the engagement of Melbourne-based business consultancy firm 333 to assist in a company restructure.

Mercury managing director Brendan Santamaria said the last financial year had been a difficult one for the company but he was hopeful for the year ahead.

"We have a new and experienced executive team and we have successfully established a number of new brands, including securing the first worldwide licensing deal and distribution rights for the iconic North American Chip and Pepper denim offering."

"Over the year, we have also made a number of non-performing brands redundant and devoted our energies to our higher performers such as Rochford, Contempo, Billiecart, French Kitty, Purr and the leading youth action brands No Fear and Crusty Demons."