It is believed that Woolworths management have met with B Hi Fi Chairman Mr Patrick Elliott and are prepared to accept the conditions set down by the current management team at JB Hi Fi.
During earlier negotiations it is believed that a key sticking point was the retention of key management and the staying on of Richard Uechtritz the current CEO of JB Hi Fi.
Woolworths, one of Australia's biggest retailers is keen to expand their consumer electronics operations which currently consists of, Dick Smith, Tandy, Powerhouse and in part Big W stores. Recently Woolworths CEO Michael Luscombe said that Woolworths was currently investing in a major revamp of the Dick Smith business.
"We realise that we're not leading in this business, unlike every other business that we have, where we are market leader or close to number two. We have an aim in this business to gain that position, so we are undergoing a strategic review of the Dick Smith business, very much in the same vein as we did with Big W, and over the next 18 months, you can expect to see some significant ticket
Woolworth's revenue from their various consumer electronics stores 10.1% to $769 million the Company said in September. The move by Woolworths comes as JB Hi Fi sticks by their 28% forecast growth for the second quarter which is traditionally one of the best of the year.
