Africa-Press – South-Africa. Woolworths is nearing a deal to sell Australia’s oldest department store chain David Jones to Anchorage Capital Partners for about A$130 million (R1.6 billion), according to people familiar with the matter.
In October, Woolworths Chief Executive Officer Roy Bagattini said in the company’s annual report the group was “considering all possible options” for the future of David Jones, following years of writedowns, an annual loss and the departure of ex-CEO Ian Moir in early 2020.
David Jones enjoyed a 55% jump in total sales for the 20 weeks ended Nov. 13 compared to the same period a year earlier when much of Australia was under lockdown, according to a trading update. The rebound saw the retailer’s flagship CBD stores perform “well ahead of expectations,” even as online sales decreased by around 29%.
Anchorage’s potential acquisition signals a vote of confidence that the pandemic-induced online shopping habits are not permanent and that vigorous attention to the basics of the business model such as the supply chains and merchandise management could yet prove profitable in the long term provided it is not saddled with excessive debt.
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