Furniture retailer JD Group tumbled nearly 5% on Monday after investigative TV programme Carte Blanche highlighted credit practices at the company’s stores such as Russells on Sunday night.
At 1.46pm, JD Group’s shares were down 4,43%, or R3,90, to R84,10, while the JSE’s home-improvement index was up 0,23% on the day.
On Sunday night, M-Net’s Carte Blanche aired an investigative programme alleging that JD Group was in the money-lending business in the form of furniture loans, which are much higher in interest rate than the normal hire-purchase loans.
“It’s much more a negative sentiment towards the stock after the programme, but the credit-quality outlook of the group is positive,” said a retail analyst who declined to be named.
JD Group owns furniture retailers such as Joshua Doore, Morkels, Bradlows, Price ‘n Pride and Hi-Fi Corporation.
Last week, JD Group said bad debts rose by 39%, while credit sales rose by 6% and gross debtors by 4%. — I-Net Bridge