TRADEHOLD LIMITED - ANNOUNCEMENT
TRADEHOLD LIMITED
PRESS RELEASE:
ISIN: ZAE000026902
Share code: TDH
TWO TRADEGRO SUBSIDIARIES PLACED UNDER ADMINISTRATION
The boards of two of Tradegro UK`s subsidiaries, the retail chains What Everyone
Wants (WEW) and The Famous Brunswick Warehouse (TFBW), earlier this week placed
these two companies under judicial administration with a view to finally either
selling or restructuring them. Tradegro UK is a wholly-owned subsidiary of
Tradehold, which is listed on the JSE Securities Exchange.
Carel Stassen, CEO of Tradegro UK, said the decision had been taken after 12
months of intensive efforts to restore the two chains to profitability. "The
large-scale direct sourcing of stock enabled us to sell at prices in line with
those of our competitors, but the required increase in sales did not
materialise. Although WEW, in particular, is at present performing considerably
better, we cannot justify the substantial additional capital investment required
for the chain`s full recovery."
WEW and TFBW suffered combined losses of 28m in the financial year to 6 July
2002.
Tradehold`s only remaining retail interests in the UK is Your More Store, with
220 outlets, and a 55% interest in Brown & Jackson, which is listed on the
London Stock Exchange. Your More Store is expected to break even in this
financial year.
Stassen said, like Your More Store, WEW and TFBW were acquired from Brown &
Jackson earlier this year in a final effort to rehabilitate these three chains.
This transaction left Brown & Jackson with the retail chain Poundstretcher as
its only asset, enabling its new management under Mr Angus Monro to devote all
their time to improving the profitability of Poundstretcher.
"Tradehold will no longer need to shoulder the financial burden of WEW and TFBW
it can apply all its resources overseas to growing its successful retail
interests there," Stassen said.
Cape Town
Tuesday, 10 December 2002
MEDIA ENQUIRIES: Cornus Moore, Tradehold (021) 933 5137
Ben de Kock, DKC (021) 422 2690
Date: 10/12/2002 04:55:06 PM Produced by the JSE SENS Department
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