EXCLUSIVE: Yale Prima Wobbles As Revenues Plunge, Future JVC, Claims Director Despite Recalls
Sydney based distributor Yale Prima has reported a $10 million drop in revenue with losses blowing out from $576,490 in 2019 to $1.724 Million in 2020.
According to CEO Leonard Kirsch the business is still “Suffering a hangover” from the losses the business incurred when Dick Smith collapsed in 2016, at the time owing Yale Prima millions.
Since then, the Company has faced problems with the business having to step in to provide warranty on the JVC TVs sold via Dick Smith.
In 2017, Yale Prima were forced by the Australian Competition & Consumer Commission to offer full refunds to consumers under its own 12-month manufacturer’s warranty for unrepairable televisions purchased from the bankrupt retailer.
“The ACCC’s investigation commenced after it and other ACL regulators received reports that consumers were unable to obtain repairs, replacements or refunds for faulty JVC goods in the period immediately following Dick Smith Electronics entering external administration,” said Rod Sims, chairman, ACCC.
Then in 2017 the business was hit again when they were forced to recall dodgy heaters from Bunnings. Currently the Companies web site features another recall of TV mounting brackets which were sold at Bunnings.
Now speculation is mounting that the business is up for sale after revenue dropped from $50M to $41.5M in 2020.
A net loss arising from financial liabilities designated at FVTPL was listed at $1.3M.
According to Kirsch the business is being restructured to “Predominantly focus on JVC branded audio products and TV’s”.
“We got hit hard by the Dick Smith collapse and we are still recovering” he said.
In a report to the Australian Securities and Investment Commission Company Directors also claimed that the global COVID-19 pandemic and restrictions placed on the business by the Australian Government had caused disruptions to the business.
As of 31 August 2020, Yale Prima only had cash reserves of $723,070. They said that they have no external debt other than a “underutilized finance liability of $3.7M with Westpac.
The Company admitted that they cannot “reasonably estimate” future earnings.
The report was signed by Mayer Shabat who while still being a director is not involved in the day-to-day operations of the Company.