Winning Appliances has swung to an $11.5 million loss, and the premium appliance retailer is now shedding the family’s private indulgences from its books, with a 70 foot cruising yacht and a restaurant being transferred back to the Winning family as the business is readied for a contentious ASX float.

The loss compares with a $1.9 million profit in the previous year, despite underlying earnings climbing to $59.6 million in the 2026 financial year, up from $52.85 million in 2025.

The clean-up is being driven by new CEO Anthony Heraghty, the former Super Retail Group chief executive who was sacked by that company and who is now facing Federal Court action brought by ASIC.

Yacht, Restaurants And High Risk Enterprises

The yacht and restaurant have long been a problem for Winning.

When a major retailer looked at acquiring the business some time ago, it walked away after finding the books loaded with restaurants and the 70 foot vessel.

Among the company registrations was a business called High Risk Enterprises Pty Ltd.

Alongside the transfers back to the family, the company has facilitated an $80 million dividend to shareholders.

John Winning junior left seen with his father John Winning senior.

Of that $80 million, $48 million was settled through an offset against an outstanding loan receivable from a related entity.

One-Off Charges Behind The Loss

According to The Australian, the accounts include a series of one-off charges, among them $10.5 million in unexplained projects and related costs, $14.1 million in non-cash inventory provisions and $2.94 million in employee provisions, which were also left unexplained resulting in the reported loss.

Winning has not said how much of its earnings growth came from price rises, which have been significant across its premium appliance suppliers.

Executive Exodus

Several senior managers have either quit or been hired by JB Hi-Fi Group’s e&s, which is set to take on Winning as it prepares for the float.

Also gone is Heelix, a platform designed to lift engagement and help managers improve team performance and morale. Staff morale appeared to be at rock bottom when John Winning junior was running the business.

Share Register Shake-Up

The share register was updated in late October with the appointment of Angus Malone of Double Bay as a director.

The register also includes funds manager and Firmus investor Ellerston Capital, run by Ashok Jacob and Chris Kourtis, which invested $100 million this year.

Some observers claim this relates to an 18% shareholding.

Heraghty’s Payday Hinges On Court Outcome

Heraghty is facing two categories of alleged breaches of the Corporations Act brought by the Australian Securities and Investments Commission (ASIC).

The Federal Court proceedings could result in personal financial penalties exceeding $1.5 million per breach and disqualification from managing Australian corporations, which would potentially end his tenure as Winning Group CEO.

These are civil penalty proceedings, not criminal charges, and Heraghty has not been found liable. Winning shareholders are effectively betting that he will not be banned.

If he avoids a ban, Heraghty stands to profit significantly from his appointment after being granted shares in the privately owned company.

According to The Australian, if and when Winning floats on the ASX, Heraghty will be able to cash in his new preferred shares, netting millions.

“In connection with his appointment, Anthony acquired Class A shares in Winning Group Holdings Pty Limited under the management equity plan, funded through a limited-recourse loan,” Winning’s accounts state.

Heraghty left Super Retail Group after an affair with the company’s then head of human resources, Jane Kelly. Recently revealed Federal Court documents show Heraghty told his wife to keep quiet about the alleged workplace affair when lawyers were called in to investigate.