Keri Algar
In a timely turn of events Harvey Norman Holdings Ltd is set to gain $300 to $400 million in sales annually, after confirming the recent purchase of 32 Clive Peeters stores.
The $55 million sale includes stock, logistics and structures, as well as the protection of over 1000 jobs, still subject to certain terms and conditions.
It took six weeks for the appointed Receivers and Managers of Clive Peeters, Phil Carter and Daniel Bryant of PPB, to assess the company’s viability and quickly prepare it for sale.
In a statement to the stock exchange in mid June, while Clive Peeters was in voluntary administration, Phil Carter announced a “strong interest in the sale process”.
Harvey Norman Holdings Ltd was earmarked within the industry as an obvious buyer. According to its Chairman, Gerry Harvey, Harvey Norman had been interested in purchasing the electrical and whitegoods giant during its path to insolvency, and was waiting for an opportune moment to make a bid.
The original national network of 44 Clive Peeters Ltd stores has been whittled down to 32; the unsustainable stores shut down. However, the terms of sales in the contract include the provision of continued employment to the majority of Clive Peeters and Rick Hart employees. Phil Carter of PPB confirmed that the greater part of the 1200 employees will retain their jobs.
“This is an excellent outcome. We are delighted to have secured the employment of the vast majority of the workforce. This is particularly pleasing as employees have been instrumental in keeping Clive Peeters and Rick Hart stores trading during this time and they are to be congratulated for their efforts. We are continuing to work with Harvey Norman who are interviewing remaining staff over the next week,” said Carter.
Carter’s words should ensure a collective sigh of relief from Clive Peeters’ staff, glad not to be turned out into an already embattled employment market.
Having purchased “certain stock and plant and equipment….know-how, intellectual property rights and systems,” Phil Carter said Clive Peeters and Rick Hart stores will continue to trade under the same names.
“The stores will continue to trade as Clive Peeters and Rick Hart and we are pleased to have helped preserve these great brands. Under the stewardship of Harvey Norman we are confident that the businesses will have a prosperous future,” said Carter.
The $55 million purchase by Harvey Norman and subsequent $400 million annual sales estimated serves to confirm the idiom that one man’s loss is certainly another man’s gain.