Mercury Brands fighting on

MELBOURNE: Mercury Brands executives have made a defiant stance in presenting the apparel group's annual report, arguing a new restructuring program would help combat its $7.8 million loss in fiscal 2008. The Victorian-headquartered company incurred one-off significant costs totalling $4 million in the year ended 30 June, including $900,000 in redundancy payouts associated with the restructure of the business and $600 000 in restructuring consultancy fees.

Mercury Brands, formerly trading as Austin Group, suffered a number of blows over the 2008 financial year including the collapse of major shareholder Hawkswood Investments. The company, a related entity of the Opes Prime Group, was a significant investor in Mercury Brands and had $6 million worth of Convertible Notes.

Chairman Michael Abela said the recent acquisition of those notes by Melbourne group Albany Capital Investors, coupled with its ongoing restructure work with consultancy group 333, would place the group in a stronger position for fiscal 2009.

"With stable financing now in place, the challenge to which the company now must rise is ensuring the structures and procedures we put in place start to deliver shareholder value."

He said the company would emphasise four strategic values: improving existing supply channel logistics, adhering to stringent financial protocols and strengthening the company's management team.

Managing Director Brendan Santamaria said a new branded apparel strategy would also strengthen the company's position. Mercury Brands streamlined its brand portfolio over fiscal 2008, focusing on higher margin and lower volume products and acquiring new brands such as Chip & Pepper denim and local fashion business The Factoree.

"This acquisition together with our existing high performance brands including Rochford, Contempo, Billecart, French Kitty, Purr and and the leading youth action brands No Fear and Crusty Demons will continue to well position the company," Santamaria said.