Senior executives of the Good Guys retail group have admitted that they are currently doing due diligence with a view to buying the troubled Clive Peeters Group. Also interested in the Victorian retailer is JB Hi Fi.
Senior executives of the Good Guys retail group have admitted that they are currently doing due diligence with a view to buying the troubled Clive Peeters Group. Also interested in the Victorian retailer is JB Hi Fi.
The 48 store Clive Peeters operation has seen a 62% slump in earnings for the December 2008 half year and are currently struggling to fund their operation in a move that forced QBE insurance to restrict their credit options.
Last week the company responded to an ASX query following a spike in Clive Peeters shares. They said that the Company does not expect its operating profit to be less than the previous corresponding period by more than 15% and that they could offer no reason why Clive Peeters shares had suddenly jumped 42% earlier in the week.
The 91 store Good Guys group, which is predominantly owned by the Muir family, recently reported a 23% jump in sales to $1.6 billion. This puts them alongside JB Hi Fi as who is reporting a 28% lift in sales to $2.4 billion dollars.
In a recent survey conducted by Nielsen 82% of consumers aged between, 18 to 65 said that they would consider the Good Guys for their next electrical purchase. This put them ahead of both Harvey Norman and JB Hi Fi.
Last year Clive Peeters commissioned KPMG to assess the value and viability of their business. That report is now believed to be in the possession of Clive Peeters directors.
More to follow.
