IAC to take $300 impairment on Cornerstone
IAC/InterActive Corp. said it expects to take a goodwill impairment of approximately $300 million against its retailing unit, which includes HSN and Cornerstone Brands, in a filing with the Securities and Exchange Commission on June 26.
The company said one reason for the impairment is the significant deterioration in the retail environment, particularly in the home and apparel categories where Cornerstone primarily operates. IAC does not believe HSN is impaired.
Execution issues and management turnover further exacerbated the problem. As a result, Cornerstone is expected to incur an operating loss for the first half of this year, compared to operating income of $13.7 million last year.