Harvey Norman chairman Gerry Harvey is standing by toy wholesaler Funtastic despite an AUD26 million (USD24.1m) first-half loss and the proposed sale of the company’s entertainment business to two Funtastic executives for half its former book value.
Harvey said he had bought a 6 percent stake in Funtastic because of the growth potential of its slushy-maker, Chill Factor, and was unfazed by the deteriorating performance of its other toy brands.
”They have a product there that if they can sell 20 million a year around the world, that’s pretty hot. That’s why so many people are sticking with it,” Harvey said after Funtastic reported an underlying net loss of AUD1.7 million and a bottom-line loss of AUD25.8 million.
(Source: The Sydney Morning Herald Online )