(Bloomberg) -- Pick n Pay Stores Ltd. expects to report a full-year loss as South Africa’s third-biggest grocer takes a 2.8 billion-rand ($155 million) impairment on unprofitable stores. 

The loss per share will range between 6.86 rand and 6.37 rand for the 52 weeks to Feb. 25 compared with earnings of 2.43 rand a year earlier, the Cape Town-based company said in a statement Wednesday. 

About 1.8 billion rand of the impairment is for loss-making company-owned stores that will be closed or converted to either franchises or Boxer outlets, while the rest relates to a reduction in the value of assets of underperforming stores that will remain open. 

Read more: Pick n Pay Plans Boxer IPO, $211 Million Boost in Revamp Bid

Besides the writedown, higher debt-service costs and an increase in diesel expenses to run generators to keep operations going during South African power blackouts contributed to the loss, it said. 

In February, Pick n Pay said it would raise as much as 4 billion rand and list its Boxer business on the Johannesburg bourse as part of a strategy to revive the business. 

The plans are “progressing well,” and the company will seek shareholder approval for the rights offer at an extraordinary general meeting at the end of June. 

(Corrects rand value of impairment in first paragraph.)

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