Wholesale giant Metcash today announced it is in the final stages of selling its newly acquired Franklins supermarket chain to Australian IGA Supermarkets. Metcash Chief Executive Officer Mr Andrew Reitzer said the company had so far received over 200 expressions of interest to buy the supermarket chain and was looking forward to transitioning Franklins into the “right hands”. Mr Reitzer said discussions with potential buyers of the Franklins supermarkets would begin on 21 November. The process... ...Read more »

Wholesale giant Metcash is free to complete its acquisition of Australian supermarket chain Franklins after the Federal Court refused an application by the Australian Competition and Consumer Commission’s (ACCC) for an injunction to prevent the acquisition taking place. The Federal Court also granted an expedited timetable for the appeal hearing with a three day hearing scheduled for 24 October 2011. As a result, Franklins parent company Pick n Pay can now agree with Metcash to waive the condition... ...Read more »

Pick n Pay CEO Nick Badminton said yesterday he was “disappointed” with the performance of South Africa’s second-largest grocer and warned about continuing difficulties in the trading environment as he unveiled an 18% drop in annual profits. Badminton said the fiscal year to the end of February had been the “toughest trading year in the group’s history” as it worked to “transform” the business in “an exceedingly difficult trading environment”. “This... ...Read more »

Metcash and Pick n Pay, owner of the Franklins supermarket chain, today announced that they have agreed to extend the cut-off date for the proposed sale of the chain to Metcash. Metcash announced that it will “take further steps to proceed with the proposed transaction”, despite the Australian Competition and Consumer Commission’s opposition of the sale. The ACCC opposed the sale of the supermarket chain to Metcash on the grounds that it would create a monopoly on wholesale supply... ...Read more »

The Australian Competition and Consumer Commission yesterday announced that it will oppose the sale of supermarket chain Franklins to wholesale giant Metcash, on the grounds that it would create a monopoly in wholesale supermarket supply in NSW, and make it more difficult for another wholesaler to enter the NSW market. Metcash had announced its intention to purchase the 88 Franklins stores for $215 million, and then onsell them to independent retailers under the IGA brand, retaining supply rights. “Central... ...Read more »

Franklins today revealed that its parent company, South African based Pick n Pay, has begun preparations to sell its stores via tender individually, or in groups, in the event that the ACCC blocks its planned sale to Metcash. Pick n Pay said it would work with the ACCC to secure approval of the proposed sale as a preferred option, and said it was confident of its arguments to persuade the ACCC to approve the transaction. At the time of the sale, Metcash announced plans to onsell on the acquired Franklins... ...Read more »

South African supermarket group Pick ‘n’ Pay said its Franklins retail business, which it has sold to Metcash Trading, did not achieve “critical mass” in the Australian market.The firm yesterday (1 July) announced that it has sold 85 Franklins supermarkets, comprising 77 corporate stores and supply to eight franchised stores to Australian independent grocery wholesaler Metcash Trading for US$125m. Pick ‘n’ Pay entered the Australian market via the acquisition of... ...Read more »

Discount supermarket chain Franklins has been acquired by its former wholesale supplier, Metcash Trading Ltd, in an unsolicited $215 million offer to its current owner, South African chain Pick n Pay. The sale, pending approval from the ACCC, will also bring to an end all current litigation between the two groups. Franklins won a legal stoush with Metcash over discounted wholesale prices in December 2009. Metcash will acquire the company’s 85 supermarkets, including 77 corporate outlets and... ...Read more »

Franklins Australia, the local unit of South African retailer Pick ‘n Pay, produced a 3.3% increase in turnover in Australian Dollars for the six-months to August 31. The company has managed to turn things around over the past year and a half, and earlier this year reported their first ever full-year profit since being acquired by Pick ‘n Pay in 2001. “The key driver to this improvement is enhanced performances by refurbished stores, which includes an introduction of a comprehensive... ...Read more »

South African based supermarket group Pick ‘n Pay has reported a significant turnaround in the operations at their Australian chain – Franklins. The grocer, which operates over 80 stores throughout the state of New South Wales, reaped a trading profit of R23.5 million ($3.7m) before capital profits for the year ended February 28, a marked turnaround from last year’s loss of just under A$5 million in Australia. Turnover grew by around 18% in South African Rand terms and 3.5% in Australian... ...Read more »