By Adam Coleman
BRISBANE: Betta Stores Limited (BSL) has announced it is finalising the sale of two company-owned stores at Aspley and Morayfield in Brisbane to the group’s largest franchisee, Kempcombe Pty Ltd.
The two stores, branded as Betta Electrical Superstores, currently have a combined annual turnover of approximately $16 million and were operated by BSL subsidiary Betta Stores (Northern) Pty Ltd.
In a statement to the Newcastle Stock Exchange yesterday, BSL Chief Executive Officer Guy Houghton said the sales highlight the group’s renewed focus on its core business of franchising, which was outlined at the BSL conference in Fiji last month.
“We have embarked on a strategy of divesting some of our company-owned stores and the sale of the Aspley and Morayfield stores shows this strategy in practice,” Houghton said.
The sale of the Aspley and Morayfield stores follows BSL’s recent sale of three company-owned stores in Melbourne to Clive Peeters, which is expected to settle this Friday 30 June.
“We are a franchisor and these sales highlight our commitment to focus on our franchise services while continuing to grow our franchise network.”
To support the sale of the Aspley and Morayfield Betta Electrical Superstores, Kempcombe Pty Ltd has entered into a new agreement that will see them remain with the BSL Group for a minimum of an additional five years when its current franchise agreements are renewed next month.
Established in 1961, Brisbane-based BSL has a network of more than 300 stores throughout Australia, including its flagship Betta Electrical and Chandlers brands.
The two new store purchases at Aspley and Morayfield take the total number of BSL stores owned and operated by Kempcombe Pty Ltd to seven.
The company also owns three Betta Electrical stores at Bundaberg, Maroochydore and Maryborough as well as two Chandlers stores at Hervey Bay and Mackay.
Kempcombe Pty Ltd received the BSL Group’s award for top Chandlers retailer for 2005.