Discount variety store, the Reject Shop, has confirmed that its profit may be lower than forecast due to waters in Ipswich flooding their main distribution center.

The distribution center will unusable for two months and will severely affect company operations since the center supplied to 90 of its 211 stores.
It is located in the nearby Bremer River in Ipswich. The city has been one of the worst hit areas in the state with almost half the city affected and it central business district temporarily closed.

''A significant amount of inventory'' had been lost and equipment including conveyor belts, forklifts and computers had been damaged, said the company.

''Our initial assessment suggests that the facility will be inoperable for eight weeks, but it will likely take longer to reinstate full operating capability,'' added managing director, Chris Bryce.

The company will make use of its business interruption insurance to augment losses but will also need to spend monet on non-recoverable costs.

In 2010, the Reject Shop was cited as one of the best performing retail outlets for the year and opened 27 stores.