CORRECTED-BRIEF-Rona announces restructuring and reorganization measures

Thu Jun 27, 2013 8:39am EDT
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(Corrects headline, which previously said the company is cutting 200 jobs)

June 27 (Reuters) - June 27 (Reuters) - Rona Inc : * Announces recovery plan to accelerate network optimization and improve profitability * Announces new restructuring and reorganization measures to ramp up the recovery and improve profitability * New measures are expected to generate annualized cost-savings of $70 million * Plans include closure, by the end of 2013, of 11 non-profitable stores: eight in Ontario and three in British Columbia * Plans for a further reduction of 125 jobs in the four administrative centres in Canada were announced to employees last week * New measures will require pre-tax restructuring costs and charges of approximately $95 million to be recorded in Q2 2013 * A total of $220 million in adjustments, of which about $195 million represent non-cash items, will be recorded in Q2 * Source text for Eikon * Further company coverage (Reporting By Varun Aggarwal in Bangalore)