By James Wells
BRISBANE: Sources within the retail consortium believe they have the numbers for the purchase of the BSL franchise business and have made a bid of between $3 million and $4 million, which they claim is larger than the proposal put forward by the Leading Edge Group.
Members of the consortium have told Current.com.au that with the support and buying power of Everard Johnson’s $50 million retail business as well as financial pledges made by up to 150 retail businesses, they are confident that they have both the financial backing and buying power necessary to win the bidding process.
Under the consortium proposal, the business will operate privately to begin with and will then consider options as to whether it will re-list on the Newcastle Stock Exchange, undertake another public offering, participate in a trade sale or continue to trade on an ongoing basis.
For the smaller retail stores, the consortium is designed to offer the businesses a buying group which will allow them to continue to trade as well as equity in the business through their financial contribution.
Current.com.au understands each store is making an average contribution of between $30,000 and $40,000.
The consortium also believes that with strong relationships in the business and throughout the industry, they are in a better position to secure the key people required to run the buying and administration activities.