“The rejuvenation of Adelaide based Harris Scarfe includes Myer’s new management buying four department stores. Two of the stores are at Doncaster and Forest Hill Victoria with two in Adelaide. Myer will also buy a 20% stake in Harris Scarfe as part of the deal, with private equity firm Momentum Investment Group taking a controlling stake in Harris Scarfe and its management team retaining a 15 per cent stake. Robert Atkins who remains as managing director, says the deal clears Harris Scarfe’s debt, incurred in purchasing the business from the receivers in 2001 and allows them to expand in other directions. No doubt Momentum hopes that Atkin’s team can reinvigurate the retailer in a similar story to the one unfolding at Myer. Myer’s new owners, Newbridge Capital consortium (US private equity group Texas Pacific and the Myer family with 8%) have already announced stunning sucesses with Myer, through a range of management decisions such as:-* Consolidation of the Supply Chain system into just a few central warehouses.* Elimination of storage areas and refurbishing of retail space* Slashing Old Stock* Reducing overall stock by streamlining supply.* Buying more goods direct from China and cutting out the middle man* Reducing staff costs from reducing stock handling.* Reducing staff costs by re-rostering of retail staff to suit key retailing hours.* Tightening their goods return policy to reduce fraud. Myer plans to grow in new directions that would also compete with Target and Kmart, Harvey Norman and speciality retailing chain stores.”
Myer Expanding With 4 Harris Scarfe Stores.
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