Woolworths inks deal to sell entire stake in David Jones in Australia | Business

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Retailer Woolworths says it has reached a deal to sell its more than 180-year old David Jones business in Australia, which will remove nearly R17 billion in related liabilities from its balance sheet. | News24_Business

Woolworths has inked a deal to sell its David Jones business, which is the world's oldest department store still operating under its original name.Woolworths has struggled since acquiring David Jones in 2014, but says its turnaround efforts have borne fruit.

During an conference call on Monday, CEO Roy Bagattini said the firm would realise value from the sale of the business, but declined to go into details, saying it was a complex transaction with a number of moving parts, but"absolutely positive for us". There would be no writedowns related to the sale, said Bagattini, adding that Australia remained an attractive market. The group sees its Country Road business becoming a more important part of the group.

"The structural economics are somewhat fragile here, this business needs extensive amounts of investment going forward, not only in its store portfolio but also in terms of its online business and its back-end system capabilities.""That capital just doesn't work for us, that sort of investment."

 

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_Business Woolies has bad memories about this acquisition.

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