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- Home appliance dealers, Beacon Lighting, will be shutting the doors at its energy solutions business
- The company announced on Monday it would complete outstanding obligations and contracts with “Beacon Energy Solutions” — aiming to close its doors this financial year and no longer take in new business
- Beacon stated it had assessed the competitive energy solutions market ahead and agreed to close the division to spread money elsewhere
- Closing down Beacon Energy Solutions may cost up to $3.9 million in a one-off cost
- Shares in Beacon Lighting on the Australian market today have dropped 1.63 per cent — valued at $1.21 by Monday market close
Beacon Lighting (BLX) has shut the doors on its energy solutions division after assessing the market ahead.
The solar market-focused division under Beacon Lighting, Beacon Energy Solutions, will reportedly be winding up a business this financial year.
Beacon Lighting, a company that traditionally deals in selling lighting appliances, gave a crack at offering energy solutions through a smaller division.
The company announced on Monday it had failed in keeping it sustainable and may spend up to $3.9 million in a one-off cost in closing the business.
“The winding-up of our Beacon Energy Solutions business will allow for the redirection of resources to support other opportunities for the group,” Beacon Lighting Chief Executive Glen Robinson said.
Beacon Lighting stated today its energy solutions business had been successful in sales and increasing brand awareness, but would continue to fail in the competitive market.
Company management said today it had begun “the process of winding up the business”.
Effective immediately, Beacon has ceased seeking new sales and will finish business by completing outstanding contracts and obligations.
The closing of Beacon Energy Solutions also coincides with the company selling its Brisbane distribution centre today to Charter Hall for $28 million.
“With the current market conditions, we were able to secure a substantial profit on the sale of our recently purchased distribution centre, generating valuable working capital to explore new business opportunities,” Glen Robinson added.
Beacon entered a lease with Charter Hall for an initial term of eight years with three further five-year options on a yield of 5.38 per cent.
Shares in Beacon Lighting on the Australian market today have dropped 1.63 per cent — valued at $1.21 by Monday market close.
