BSL responds to central accounting article

By James Wells

BRISBANE: BSL CEO Guy Houghton has responded to an article published in yesterday’s newsletter which featured a letter from a buyer explaining that the buying group would be ceasing some central accounting services at the end of this month.

In his response titled ‘What’s really happening at BSL’, Houghton said the letter has only been sent to four suppliers of the BSL Group.

"The statements appearing in the article were taken out of context from the letter or previous announcements made by the company," Houghton said.

"In accordance with its strategy to focus on its core business, BSL confirms it is assessing the provision of central accounting services for some suppliers. As stated in the letter, where the central accounting facility with a supplier has been assessed as no longer adding a benefit to retailers or BSL, then steps are being taken by BSL to enter into more favourable trading arrangements with that supplier,” Houghton said.

“The BSL Group will continue to offer central accounting facilities for suppliers where the facility is necessary and provided on terms beneficial to the supplier, retailers and the BSL Group.”

In his response, Houghton confirmed that the sale of the Retail Mortgage Services (RMS) interest free debtors book to consumer finance specialist, GE Money, for $8.5 million is proceeding in accordance with agreements between the parties.

The sale was expected to be completed today.

“BSL would like to clarify that RMS formed only one part of five businesses operated under the Truscott’s brand and acquired by the BSL Group for $22.676 million on 1 December, 2004,” Houghton said.

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