Myer lending covenants at risk if 'ambitious' goodwill value is written down

Myer risks breaching lending covenants if it follows the lead of David Jones and slashes the value of intangible assets following a sharp fall in earnings.

According to Macquarie Equities, Myer is at risk of breaching covenants if earnings before interest, tax, depreciation and amortisation fall by one-third, or if Myer cuts the value of intangibles on its balance sheet by two-thirds.