Thorn Group is preparing to sell the assets of its Radio Rentals business to Credit Corp Group for circa $45 million. The sale follows the closure of Radio Rentals stores and the transformation to an online retailer last year.
The proceeds will enable Thorn to accelerate the growth of Thorn Business Finance in line with its focus on becoming a competitive specialist financier dedicated to business finance.
Thorn Group CEO, Pete Lirantzis said the sale of Radio Rentals represents an “excellent outcome” for shareholders as it has delivered the maximum immediate value from the consumer finance business.
“This allows us to focus on Thorn’s Business Finance offering, which is now offering a digital-first debtor solution to small and medium sized businesses across Australia through integrated accounting and finance software platforms. We plan to expand this offering as a key plank in our corporate growth strategy,” he said.
Thorn’s business finance offering was launched in pilot stage earlier this year, adopting the Thornmoney brand with a digitally supported debtor finance product. In early 2022, Thorn will launch a digitally enabled equipment finance offering to leverage existing distribution relationships and customer base.
The deal is expected to be completed in mid-December 2021 subject to the final terms of certain transitional arrangements and documents.