EXCLUSIVE: Retailer Clive Peeters has been given a clean bill of health by their bankers National Australia Bank and several of their leading suppliers including LG who are exposed to the tune of $100 million dollars
It is also believed that following a major meeting yesterday in Melbourne that several leading Melbourne investors are set to snap up shares in the Company. NAB has also said that they will stand by the Company till at least August 2009. Earlier today more than 1,749,000 shares were traded in the retailer.
The retailer has also said that several staff in the Company has been snapping up shares due to their recent fall in value.
ChannelNews has been told that in meetings yesterday with bankers, KPMG and several investors the Company was given a clean bill of health with those investors now set to invest significant in the Company’s shares.
These investments say insiders will provide a significant confidence booster for the Company. In recent days several major vendors have told Clive Peeters management that they will continue to support the retailer whose share during the past two weeks have slumped from $1.00 to $0.60.
The support follows the presentation of “encouraging sales figures” and good traffic numbers over the past two weeks for recently opened stores including the new Clive Peeters store in Coburg.
According to the latest GFK data Clive Peeters has outperformed the market during the last 12 months with the Company achieving 17% growth in September and October 2008 compared to an industry average of 7%.
The insider who is also a shareholder and a leading businessman in the retail and consumer electronics and appliance market said “Clive Peeters is in good shape and while most retailers are feeling the effects of the economic downturn Clive Peeters has been able to manage their problems through the good leadership of Greg Smith who while not being the most approachable or high profile of retail CEO’s is an excellent businessman and has a full grasp of the Clive Peeters operation which employs over 1,400 people”.
He added” In recent days the management team have made presentations to bankers, suppliers and investors and everyone has said that they are impressed with the direction of the Company and given it a green light of support. This includes the NAB and some of the biggest consumer electronics, air conditioning and appliance vendors”.
Greg Smith the Managing Director of Clive Peeters said “In recent days I have made presentations to some high profile investors. There is a lot of interest in us at the moment. We are trading well and we have 100% support of our bankers and suppliers”.
“We will also benefit from our new Coburg store which is right next to a new Bunning and Officeworks stores which open this week”.