Geelong Advertiser

Masters deal cloud

Woolworths faces court action over liquidator appointmen­t

- JOHN DAGGE

WOOLWORTHS’ bid to wind up Masters has been thrown into doubt after its US partner in the failed hardware experiment launched legal action to have an independen­t liquidator appointed.

US hardware giant Lowe’s has accused Woolworths of engaging in “oppressive” conduct over its plans to sell off the lossmaking hardware chain.

Lowes yesterday asked the Federal Court to appoint a liquidator to oversee the sale of Masters, accusing Woolworths of wrongfully trying to terminate the now toxic joint venture.

The court action throws into doubt a $1.5 billion deal Woolworths announced last week aimed at ruling a line under its failed and expensive foray into the home improvemen­ts sector.

Lowe’s owns one-third of Masters via a company it created with Woolworths called Hydrox Holdings.

Yesterday Lowe’s said it had been left with no other option but to go to court in order to achieve “an equitable and orderly wind-up” of Masters, which has notched up $4 billion in writedowns and losses.

“Woolworths has engaged in oppressive conduct, including by invalidly and in bad faith attempting to terminate the JV (joint venture),” Lowe’s said in a statement.

“Woolworths has conducted the affairs of Hydrox in a manner oppressive and unfairly prejudicia­l to Lowe’s, including by wrongfully and in bad faith seeking to terminate its joint venture agreement and by seeking to exclude Lowe’s from the management of Hydrox.”

Woolworths last week announced it would close Masters by December 11, selling 82 sites to a consortium backed by the Spotlight Group and Chemist Warehouse called Home Consortium for $835 million including debt. Woolworths said this part of the deal needed Lowe’s approval.

Inventory specialist GA Australia has been hired to carry out the nation’s biggest ever hardware fire sale, expected to raise $500 million.

Mitre-10 owner Metcash will buy Woolworths’ Home Timber & Hardware business for $165 million.

 ??  ??
 ??  ??

Newspapers in English

Newspapers from Australia