Allders sticks with Minerva offer
Trading still tough for department store operator
January 22 2003
Allders has reconfirmed its support for the agreed bid for the business form majority shareholder Minerva, despite the increasing stake in the business held by entrepreneur Tom Hunter.
The department store saw a modest overall sales increase of 2.1 per cent in the 16 weeks to January 18, with like-for-like sales down 2.6 per cent. The post Christmas sale generated an improved performance, with total sales up 4.8 per cent in the 4 weeks to January 18 and like-for-like moving into the positive, up by 0.5 per cent.
Allders said trading over the sixteen week period is better than indicated in its formal response to the agreed offer from Scarlett Retail, the company set up by Minerva in partnership with former Bhs chief executive Terry Green, but that market conditions remain difficult.
Chairman Brian Fidler said: “Whilst trading over the past four weeks has been better than that experienced in the build up to Christmas, market conditions remain difficult.
“The Allders board continues to recommend shareholders to accept the offer from Scarlett Retail Group. Despite the announcement on January 7 2003 by West Coast Capital stating that it is considering making an offer for Allders, no offer has been received and nothing has happened to cause the board to reconsider its recommendation. In the event that this situation changes, the board of Allders will inform Allders shareholders immediately.”
West Coast Capital is controlled by Tom Hunter, who has built up a share of more than 10 per cent in Allders.
