Ja­maican Teas sells Mon­tego Bay su­per­mar­ket

Jamaica Gleaner - - BUSINESS - Tameka Gor­don Busi­ness Re­porter tameka.gor­don@glean­erjm.com

JA­MAICAN TEAS Lim­ited has sold its stake in the Bay City Su­per­mar­ket, based in Mon­tego Bay, mark­ing its se­cond dis­posal of a re­tail hold­ing this month.

The bev­er­age com­pany is also sell­ing its Shop­pers Delite op­er­a­tion in West­more­land.

Both trans­ac­tions are due to close by Oc­to­ber 31, ahead of the pre­vi­ously pro­jected 2017 dis­posal of the Mon­tego Bay hold­ing.

Bay City Su­per­mar­ket is op­er­ated by Bay City Foods Lim­ited, in which Ja­maican Teas has 49 per cent own­er­ship. Its part­ner in the busi­ness Amal­ga­mated Dis­trib­u­tors Lim­ited also owns 49 per cent, while John Ma­hood and Mar­cos Dab­doub hold one per cent each, ac­cord­ing to Com­pa­nies Of­fice records.

The com­pany is hop­ing to even­tu­ally im­prove its oper­at­ing re­sults by cut­ting the loss-mak­ing en­ti­ties.

Shed­ding the su­per­mar­kets will al­low for fo­cus on its other busi­nesses of man­u­fac­tur­ing and real es­tate, it said.

Ja­maican Teas is pri­mar­ily a bev­er­age com­pany, but its hold­ings also in­clude gro­cery as­sets as well as real es­tate.

SHOP­PERS DELITE STAYS

Its other Shop­pers Delite hold­ing in Kingston has con­sis­tently per­formed for the com­pany and will be kept amid the re­shap­ing of Ja­maican Teas’ core fo­cus, CEO John Mah­food pre­vi­ously told Gleaner Busi­ness.

Since the lease on the Mon­tego Bay su­per­mar­ket would have ex­pired in Novem­ber this year, the com­pany had set a tar­get for wrap­ping up the sale by early 2017, Mah­food said on Tues­day.

“But we didn’t know that things would work out as quickly as they did. So as it turns out the com­ple­tion date for both the Savanna-la-Mar and Mon­tego Bay store is this week­end,” he said. John Mah­food, CEO of Ja­maican Teas Lim­ited.

He did not dis­close the name of the buyer. As with the Shop­pers Delite store, the sale in­cludes the fixed as­sets and the in­ven­tory, which will be val­ued at the end of the month.

“When that is counted, then we’ll know,” he said, in ref­er­ence to the fi­nal sale price for the su­per­mar­ket op­er­a­tion. “It’s not a big amount com­pared to our as­sets.”

Ja­maican Teas does not ex­pect to make a loss on any of the dis­pos­als.

“The sell­ing price will cover the in­vest­ment that we have in the stores,” Mah­food said.

Bay City Su­per­mar­ket was bought six years ago.

To­gether the out­lets ran roughly $20 mil­lion a year in losses, “so in that re­gard, we should be bet­ter off”, said the Ja­maican Teas CEO.

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