Tuesday, August 24, 2010

Macro Good Bye

We Got it SOOOO wrong! SOLD

Macro Wholefoods has been SOLD! as predicted by mc65 earlier this year. Woolworths Ltd has paid a pittance for the upmarket organic grocer. Mr Cody & Co have apparently cut their losses & walked away from a battered business.

Woolworths Ltd will expand its Thomas Dux Grocer stores in NSW and Victoria with the acquisition of store leases from Macro Wholefoods.

Woolworths currently has two Thomas Dux stores operating in Paddington and Lane Cove in Sydney, with a third about to open in Darlinghurst.

The deal, will see the eight existing Macro stores re-badged as Thomas Dux.

Thomas Dux general manager Pat McEntee said the Macro Wholefoods acquisition would provide the ideal platform for building the Thomas Dux network.

"Macro Wholefoods sites across Sydney and Melbourne are well positioned in popular locations that are desirable and accessible to our target market" said Mr McEntee.

The Sale includes the acquisition of a development site in Melbourne and the Macro Brand.

Existing Macro staff of those stores will be offered roles within Thomas Dux or other Woolworths brands.

Specific details of the acquisition were commercial-in-confidence and were not released.

Notable Comments:

Anonymous said...

if specific details of the acquisition were commercial-in-confidence then how can you report it as fact that Woolworths Ltd. paid a pittance? source?

mc65 said...

A pittance in this case is based on what the proprietors have put into the business to keep it afloat: second mortgages, loss through the entire life of the business, financial topups from the board etc. As the amount is commercial-in-confidence it would not be correct to specify a dollar amount.
Suffice to say that it would be mathematically improbable that the proprietors have made a buck out of the sale, Woolworth Ltd tends to pay a premium on profitable business, as they are essentially not buying the brand and will more than likely lose sundries like support office, logistics and cafes, it is unlikely that they paid to make you any wealthier.

mc65 said...

The point wasn't too bash Macro or it's board. Macro is a brilliant (at inception, timely) retail concept, outwardly it has been executed well. It has however lacked commercial prowess, time and time it has shown itself to be more about a personal ethos than retail sales.

There are two points:

1) When the initial story ran in Feb/Mach 2009 Mr Cody was quick to reassure staff and suppliers that No Sale was immanent. Where is the correspondence now that the sale has happened, I've taken several calls from suppliers asking wtf is going on?

It's very easy to keep the self indulgent attitude going, it is not all about a single persons image however. There are many small business out there that have built their livelihoods on the back of Macro and are now genuinely concerned.

2) The other point was Bluster, being full of it is only worth a pinch when the outcome is inevitable, We were right!

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