Woolworths is finally pulling the plug on Masters.
WOOLWORTHS is finally pulling the plug on its failed Masters experiment.
The retail giant said in a statement on Monday it was looking to either sell or wind up its home improvement business, which includes Masters and Home Timber & Hardware, after sustaining heavy losses.
Chairman Gordon Cairns says the retailer’s recent review of the business indicated it will take many years for Masters to become profitable.
“We have determined we cannot continue to sustain ongoing losses from this business,” he said. “We intend to pursue an orderly prospective sale or windup of the business.”
The move comes after join venture partner Lowe’s, the US home improvement chain, exercised its put option to sell back its one third share.
“As a result of our engagement with Lowe’s, it has advised that it intends to exercise the put option which is available to it under the joint venture agreement,” Mr Cairns said.
“The agreement requires this to happen before Woolworths may exercise its call option. Following the exercise of our call option, we intend to pursue an orderly prospective sale or windup of the business.
“This enables full ownership of the business by Woolworths in a shorter time frame and gives us access to the widest range of exit options.”
More to come.
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