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Treasury Wine Estates Limited (ASX:TWE) has flagged a $260 million write-down on the same day reports have emerged claiming more suitors are circling the company.
Australia’s largest listed wine maker says the impairment reflects historical prices paid for pre-demerger acquisitions and falling sales of commercial wines globally.
CEO Mike Clarke says the write down shows the need for the company to do things differently as the current business model is not being optimised.
As a result Treasury Wine has announced a number of changes including a restructure of its Australian operations and change to its release date for the high-end Penfolds range.
The company has claimed fiscal 2015 will be a reset year – just as reports named French luxury goods brand LVMH, Chinese owned Bright Food and New York listed Constellation Brands (NYSE:STZ) as potential suitors.
Treasury Wine rejected a cash offer of $4.70 per share from Kohlberg Kravis Roberts at the end of May.
Treasury Wine Estates reported a net profit of $107 million in the first half of the 2014 financial year.
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