Retailer Clive Peeters suspends shares over “accounting discrepancies”

High-profiled whitegoods and electronics retailer Clive Peeters has suspended its shares from trading on the Australian Securities Exchange due to the discovery of “accounting discrepancies” that may affect its end-of-year financial results.

The company warned the market on 31 July that the accounting problems would increase its operating loss for the 2008-09 year from $4-5.5 million to $11-12 million.

Yesterday it officially suspended its shares pending further investigations into the “discrepancies”.

The accounting issues come after an extremely difficult 12 months for the retailer.

After profit plunged from 90% in the six months to 31 December 2008, managing director Greg Smith launched a strategic review that examined options to restore shareholder value, including a sale or restructure of the business.

Smith announced at the start of July that this review had “not yet produced an acceptable outcome that represents shareholder value”, although Smith has been steadily reducing the company’s overheads and has closed four unprofitable stores.

He also managed to roll over the company’s short-term debt facilities, which are now not due until 30 June 2011.

Clive Peeters said the “accounting discrepancies” should not affect the company’s 2009-10 year results.

A date for the resumption of trading of the company’s shares is yet to be announced.