By Patrick Avenell
Retravision WA and Retravision Northern have received 67 migration applications so far, with more expected over the next few days, according to WA CEO Paul Holt.
Shortly after Retravision Southern went into administration, Retravision WA and Retravision Northern commenced a plan to move willing members of the Southern group into a new buying organisation, based on geography.
“We’ve had 67 applications so far, and that was up to 4:30pm today,” said Holt. “Now bear in mind that many of the stores saw the Proposal for the first time this morning.
“There’s been a massive response, with members saying, ‘Open me up an account’.
“We’re talking about Victoria, Tasmania and the southern half of New South Wales — the round number is about 100 stores in total.”
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Migrating members will not immediately become shareholders of their new buying group, Holt told Current.com.au.
Under the terms of this “Migration Proposal”, stores in Victoria and Tasmania will join WA while stores in New South Wales will join Northern, which also looks after Queensland and the Northern Territory.
We asked Holt how he arrived at this split.
“Northern and Western have strong banking relationships with existing bankers and existing headroom in our facilities,” he said. “What we’ve tried to do is look at estimates — what kind of volume we think will transition — and estimate where the headroom in our banking arrangements is, and make sure that we migrate within our current banking facilities.”