JD Group: Half the debt is bad, say sources

JD Group, the furniture retailer that this week said it made its first annual loss since at least 1994, had a ratio of about 50 percent of non-performing debt on its loan book, according to two people familiar with the matter. The sources asked not be identified. The company, which once made more money from credit facilities than selling furniture, has seen its non-performing debt increase as consumers struggle to repay loans. Non-performing loans were 43 percent for the secured lending book, where loans are given on the condition of collateral being provided, as of December 31 and 53 percent for the unsecured book, where security is not provided, acting chief executive Peter Griffiths said in February without providing an overall figure. JD said on Monday that it made a loss of as much as R8.70 a share for the year to June from a R2.76 profit a year ago. It would give further details when it released its full annual results on about September 8. JD shares lost 1.09 percent to close at R22.65 on the JSE yesterday. – Bloomberg