Sydney-based Shriro Holdings is getting out of the kitchen appliances business.
The business lost the rights to Blanco, and then, after hiring former dumped Smeg Australia CEO Jim Kalotheos to run their Omega business, saw the brand dumped from Harvey Norman under his watch, has called it quits, claiming their kitchen appliances business is “not profitable”.
In a statement to the ASX, ‘Shriro has found this (kitchen appliance business) to be a competitive segment of the consumer goods market in Australia, with many well capitalised global manufacturers in this industry.’ 
‘The revenue from kitchen appliances was $37M for the 12 months to 28 February 2023. Shriro’s margin has been increasingly squeezed.
in the kitchen appliances products due to market pressure resulting in it being a loss-making part of Shriro’s business’
‘The loss of a major retailer for the Omega brand was the catalyst for deciding to exit the kitchen appliances product category in Australia’
The business has also moved to shut down its Victorian warehouse in Dandenong.
‘This will result in some one-off costs in FY23,’ claims CEO Tim Hargreaves.
“This will ensure the business continues to operate efficiently and will offset the impact of the loss of revenue. The exit will not negatively impact the Group’s profit from 1 Jul 2023 onwards, however there will be a release of cash from the debtors and inventory of approximately $12M, collected in the first half of 2024′ he claimed.
He claimed that Shriro’s New Zealand appliances division continues to trade well and dominates in the laundry tubs market and will continue with business as usual.
The business has a successful BBQ products business, and is also the distributor of Casio (AU and NZ) and Pioneer (NZ), products, which are witnessing significant growth.
