"The deal gives us the opportunity for a fresh start with our members owning their brand. It also offers our suppliers a national brand through which to market their products."
Queensland Business Quarterly
November 6, 2006
Betta Stores sold as a going concern to franchisee consortium
The core franchise business of Betta Stores Limited (BSL) has been sold as a going concern to BSR Australia Limited, a consortium of senior franchisees within the BSL Group for an undisclosed price.
Receiver and manager of BSL, PricewaterhouseCoopers partner Phil Carter says the deal announced today includes the sale of the Betta Electrical, Chandlers and other brands owned by BSL, and the associated intellectual property, IT system and fixed assets.
The deal does not include the sale of Truscotts Hi-Fi, which is being sold separately as a going concern.
Carter says, "The Betta sale is great news particularly for the network of Betta and Chandlers franchisees and the staff of BSL’s Brisbane based office. The majority of staff will be offered new roles with BSR."
"In less than a month we have negotiated a deal that delivers the best outcome for everyone involved.
"I congratulate the consortium on the deal and wish them well for the future."
Head of the BSR consortium, senior franchisee Everard Johnson adds, "We intend to continue the business with the support of the majority of the Group’s franchisee members".
"The deal gives us the opportunity for a fresh start with our members owning their brand. It also offers our suppliers a national brand through which to market their products."
"We will continue to work with the receiver and manager, PricewaterhouseCoopers partners Phil Carter and David McEvoy to ensure smooth transition of the business."
Expressions of interest in Truscotts will continue to be sought and Carter says discussions with interested parties are ongoing.
"We are also continuing with the process of selling BSL’s Brisbane head office premises and other assets," he says.
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Risks: Franchisees buy franchise system, Franchisor insolvency, Australia, 20061106 Betta Stores
