Rebrand for PRG chain

PRG - owned by entrepreneur Eric Watson's Logan Corporation - is to rebrand its troubled UK subsidiary PowerHouse.

PRG lost $13.1m in the March year, mainly due to the continued poor performance of its British electrical goods chain, which it now wants to rename Go Switch On.

PRG shares were at $1.54 on Friday - their lowest level in over five years and the company has issued a profit warning.

Even though its high street electricals retailer is number three in the British market, PRG has warned that its sales growth is less than budgeted, and likely to result in a moderate loss for the financial year to March 31, 2007.

PRG had expected PowerHouse to break even in the current financial year.

It has already rebranded four stores as Go Switch On in a six-week trial, and it plans to convert the entire 53-store chain by November.

Retail Knowledge Bank senior partner Robert Clark said in Britain that this could be the last chance for the retailer to develop a sustainable format and business model.

In the financial year to March 31, gross operating revenue at PowerHouse fell to £143.9 million ($437.1 million) from £215.7 million.

In New Zealand, shares in parent company PRG Group could to be suspended from today until later this month. The stock exchange has made the threat because it has not received an audited annual result to March 31.

PRG Group had expected audited results by June 30, but has since said there will be a further wait due to a delay in getting an audit of its former Finance Group.

- NZPA