Hardware Retailing The Industry's Source for Insights and Information
Australian company Woolworths is selling off segments of its failed joint venture with Lowe’s in Australia, and a court has ruled against Lowe’s request to have a court-ordered outsider handle the liquidation.
The joint venture has steadily lost money, and Lowe’s announced Jan. 18 that it was exiting the partnership and the Australian home improvement market.
An Australian federal court turned down Lowe’s request for court intervention in selling the stores and other assets, according to a Sept. 27 article from The Sydney Morning Herald, which is an Australian daily newspaper.
Woolworths has found buyers for stores, properties and product inventory. However, Lowe’s has sought federal court intervention in the sale of assets. The American company argued that Woolworths hadn’t been transparent about the deals it was making, The Australian Financial Review reports.
Woolworths claims it delivered “detailed briefings about the sale proposals in the weeks before the deals were announced in August,” according to The Australian Financial Review.
Denying Lowe’s request, the court sent the companies into arbitration. This means they will work with a third party company to resolve their disagreements, the Morning Herald article says.
Woolworths, which operates supermarket, liquor and hospitality businesses in Australia, had partnered with Lowe’s in 2009 and, with the U.S. company, began opening Masters Home Improvement stores in 2011. Masters has more than 60 locations. The joint venture also owned and operated Home Timber & Hardware Group, another store chain and wholesaler.
