Millers Retail has made a virtue out of pitching at the cost conscious shopper. But that hasn’t been enough lately to increase profits and on Tuesday it joined the $100 million loss club thanks to write-offs and restructuring charges after a year that saw the company all but bailed out by a South African-owned investment bank.

The company revealed the loss and write-downs in its 2005 profit statement. While some of these were signalled at the interim profit announcement in January, today’s statement included the spin that the company concentrating on improvement in cash flow, a 39% reduction in debt and a “25% reduction in inventory.”

Earnings before interest tax and depreciation and amortisation were just over $53 million “in line with June guidance.” The mantra was “we’re on track.”To where exactly remains uncertain.

Inventory has been slashed by more than $69 million and restructuring charges of another $60 million were booked, producing an after tax loss of $103.4 million.

But 2005 hasn’t been good to the company as shoppers deserted it, especially in the discount variety area. So much so that the company and the New Zealand based Warehouse Group had talks about combining both companies’ discount variety chains, without any apparent success, it would seem. At the half way mark in December, the company was forced to write down the value of assets and take restructuring charges as profits plunged, along with the share price.

The South African-owned Investec investment bank emerged as a saviour, buying shares and providing advice and funds, as this story from the The Age explains.

In the most telling sign of all, the board was restructured, with Investec representatives coming on board to make sure their investment wasn’t going south.

The company’s shares were down 2c at 87c at midday.