The write-down will primarily be to Metcash's goodwill,which refers to intangible assets such as the value of its brand name. Part of the write-down also relates to the company's food division.
The write-down is an additional blow to the already-struggling retailer which is best known for supplying IGA supermarkets and the Mitre 10 and Home Timber&Hardware home improvement chains.
Last month,the company confirmed convenience store 7 Eleven would cease its lucrative supply contract with the distributor,worth about $800 million.
With the contract set to end by August 2020,Metcash also flagged a $15 million hit to the retailer's earnings before interest and tax (EBIT) in its food division.
At the time,chief executive Jeff Adams told The Sydney Morning HeraldandThe Age the situation was"disappointing"but the retailer could not comply with 7-Eleven's seven-day delivery and four-hour fulfilment windows.
"You can do those things,but they become very expensive. It just reached a point where the contract was going to lose money,there was no point in continuing,"Mr Adams said.