Retail Adventures tipped to confirm more job losses, IAG cuts 600 jobs: Midday roundup

Retail Adventures, the discount shop operation owned by Kathmandu founder Jan Cameron, is expected to announce major cost cutting initiatives today that will result in job losses.

According to BusinessDay, 60 staff have already been let go, and managers have reportedly been asked to take extensive pay cuts.

The company owns 300 locations under four brands, including Go-Lo, Crazy Clark’s, Sam’s Warehouse and Chicken Feed, with an annual turnover of $600 million.

This anticipated announcement comes during a tumultuous time for the industry, with more than 500 store closures announced during the past year and hundreds of job losses.

This week WOW Sight and Sound announced all of its 15 stores would be closed.

Retail Adventures has been showing signs of trouble for a while. Former Colorado chief executive Rowan Webb left the company late last year.

Qantas to shelve deal with Malaysia Airlines

Qantas has announced it will shelve plans for a partnership with Malaysia Airlines after the two companies were unable to make a deal.

In a statement to the ASX, Qantas said the companies had failed to reach a mutually agreeable contract.

“Last year, Qantas announced a five-year plan to address the challenges facing the international business,” chief executive Alan Joyce said in a statement.

“The transformation of Qantas international business remains vital, with plans to return the international business to profitability in the short term on track.”

“In the medium term, the Qantas flying businesses, both domestic and international combined, will exceed the cost of capital on a sustainable basis.”

IAG to cut 600 jobs over three years

Insurance Australia Group has confirmed it will cut about 600 jobs from its subsidiary CGU over the next three years as part of a corporate restructure.

CGU chief executive Peter Harmer said, where possible, the company will be managing those losses through natural attrition.

“We are very conscious of the impact that these changes will have on our employees and will be actively supporting them through this transition,” he said in a statement.

The changes are expected to save the company $25 million pre-tax in the 2012-13 year.

Shares open on strong overseas leads

The Australian sharemarket has opened stronger this morning after positive overseas leads, with investors confident the Greece debt deal is making progress.

The benchmark S&P/ASX200 index rose 24.6 points or 0.6% to 4195.6 at 11.30 AEST, while the Australian dollar rose nearly half a cent to $US1.06c.

In the United States, the Dow Jones Industrial Average rose 70.6 points or 0.6% to 12,907.