By Patrick Avenell

Harvey Norman CFO Chris Mentis has today expressed the company’s disappointment in the performance of the 25 Clive Peeters and Rick Hart stores acquired in July 2010. As a result of this, seven of the stores purchased after the collapse of Clive Peeters Limited will be closed.

Of the remaining 18 stores, 16 will be converted to Harvey Norman outlets and two will be converted to Joyce Mayne stores.

Click here to sign up for our FREE daily newsletter

“The Clive Peeters and Rick Hart brand formats have not achieved the requirement for ongoing investment in the company,” Mentis said

“The closure of the four Clive Peeters and three Rick Hart stores will result in a charge against the pre-tax profit of the consolidated entity to an amount presently estimated to be approximately $10 million in respect of the financial year ending 30 June 2012.”

The seven stores to be closed are the Clive Peeters stores in Bendigo, Dandenong, Thomastown and Malvern; and the Rick Hart stores in Mandurah, O’Connor and Osborne Park.