Harvey Norman Holdings are set to rename several Clive Peeters stores as Joyce Mayne following their $55 million acquisition of the struggling retail chain.
According to the company’s Chairman, Gerry Harvey, he sees no problem in re-branding some of the the Clive Peeters stores Joyce Mayne, which is another retail group owned by the group.
In some cities, such as Bundaberg in Queensland, the current Harvey Norman store and the Clive Peeters store are right next to each other. Yesterday, Gerry Harvey confirmed to the local newspaper that the existing Clive Peeters store would be branded Joyce Mayne and that he saw no problems in the close proximity of the two stores. “It’s a different franchise but they will be competing just as strongly as they always have,” he said.
Of the $55 million paid by Harvey Norman Holding for the Clive Peeters assets, $38 million of the purchase price will be used to repay National Australia Bank Ltd, which is Clive Peeters’ sole secured creditor.
Unsecured creditors such as LG, Panasonic, Electrolux and others will get 30 cents in the dollar, with total claims thought to be between $48.5 million and $70 million.
