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Woolworths wants to terminate its business relationship with Masters. The Australian retail group wants to buy back the 33.3 per cent stake in Hydrox, owned by its joint venture partner, the US chain Lowe's and then sell off the complete home improvement business, as 100 per cent shareholder. Hydrox was originally founded by the two companies to operate the Masters' stores.
By way of justification for the decision, Woolworths' chairman Gordon Cairns said, "Our recent review of operating performance indicates it will take many years for Masters to become profitable. We have determined we cannot continue to sustain ongoing losses from this business". The 63 Masters' stores should have reached break even by 2016, but continue to rack up losses, AUD 245 mio last year. Meanwhile the total losses amount to around AUD 600 mio.
By way of justification for the decision, Woolworths' chairman Gordon Cairns said, "Our recent review of operating performance indicates it will take many years for Masters to become profitable. We have determined we cannot continue to sustain ongoing losses from this business". The 63 Masters' stores should have reached break even by 2016, but continue to rack up losses, AUD 245 mio last year. Meanwhile the total losses amount to around AUD 600 mio.
