It has been reported a United States auction group, Great American Group, is in negotiations to take over Masters’ inventory, which could be worth as much $500 million.
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Woolworths will close all stores of its failed hardware chain Masters in early December – leaving 8000 jobs in question.
Finally, a consortium including Aurrum Group, Spotlight Group and Chemist Warehouse proposes to buy 82 Masters properties and development sites and turn them into large-scale retail centers, Woolworths said.
Woolworths also plans to sell or close its Masters hardware chain.
About $1.5 billion in gross proceeds is expected from the collective sales and after wind-down costs are factored in, Woolworths expects about $500 million in net proceeds.
Woolworths chief executive Brad Banducci, who was parachuted into the top position in February said these agreements follow an intense seven months of reviewing all possible options.
“Woolworths is looking to exit the home improvement sector and we are unable to comment on the sale process that is now in train”, the company said in a statement.
Metcash Ltd., the owner of the Mitre 10 hardware chain in Australia, agreed to buy Woolworths’ Home Timber & Hardware Group for A$165 million, Woolworths said in a statement. “This decision means management can focus on driving the momentum in our core businesses”.
Meanwhile, Woolworths, which is due to release its full-year results tomorrow, remains in a trading halt.
Home Timber & Hardware Group is an integrated hardware wholesaler and retailer with 1,200 stores in its network and retail brands including Thrifty-Link, Hardings and Hudson Building Supplies.
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The acquisition by Metcash, also the operator of IGA supermarkets, a competitor to Woolworths, will be funded through an institutional equity placement of $80 million and $85 million in debt from existing facilities.
