I believe you BB
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I believe you BB
Two quick thoughts. 1) That's a lot of moolah to pick up WW stake-leveraged? and 2) What will F/Stuffs reaction be now that WW not holding a blocking stake. I would think they possibly looking to also exit and obviously only likely to be one realistic buyer.
All I can see is a huge mountain of leveraged debt and liabilities.
The Normans do not own any premises.
Pascoes,Farmers,Stevens,and Whitcoulls are all in leased stores.
Most will be paying massive rents with long ongoing lease commitments.[and staff commitments]
Buying into WHS just adds to this burden.
Interesting times, has to be good news for us lot
Or just to be a contrarian and arguing against my last post-Could JP already have an arrangement with F/Stuffs. Just loooking at all the angles. Can't see the Normans doing this larger buy-in with a long term view to just hold for divvies (albeit in a low interest environment) so on this basis there has to be MTC.
Percy - they are retailers, what does it matter if they own premises they own good businesses, I bet Trademe or Xero don't own theirs either.
My hunch is saying more "shop within a shop" model
Warehouse jewellery offering is sub par. I imagine it is not giving a good return in $$$ for its space.
Pascoes stores are leased in prime retail spots resulting in a high lease as a % of sales
Pascoes moves into warehouse spots - gives warehouse a slice of the cake.
The cake slice will be a better return than what warehouse is currently getting from it's jewellery offering , but lower cost than leasing a prime retail site.
Thats my hunch anyway.....