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Post by Ducky on Dec 19, 2004 23:16:11 GMT -5
Gendis sells SAAN, Red Apple stores
By KATHLEEN MARTENS, BUSINESS REPORTER
Winnipeg-based Gendis Inc. has sold its chain of money-losing SAAN and Red Apple Clearance stores to a bank and retail consortium. James Cohen, executive vice-president of Gendis, said SAAN Acquisition Group is the new owner as of Thursday night.
The new owners include the Avalon Group Ltd., a bank in New York City.
Cohen described the sale price, which was not disclosed, as "nominal."
SALES HAD FALLEN OFF
SAAN, a junior department store, was co-founded by Cohen's father Albert and his uncle Sam in 1947. It grew into a chain of 240 stores across Canada and employs 3,000 people. But sales had fallen off.
"The world is changing dramatically and you have to make choices," Cohen said yesterday. "It's time to go into other areas."
Earlier this week, Gendis announced it had designated SAAN as a discontinued operation due to the expectation of its sale in the fourth quarter. The company recorded the fair value of SAAN at nil, with a resulting write-down of $38.9 million after estimated selling costs.
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Post by dreamcatcher on Dec 22, 2004 12:40:09 GMT -5
No surprises here. Large U.S companies involved in buyouts of smaller companies is happening more and more. I expect that they will do something to bolster sales of the Red Apple chain, including the possibility of changing the name.
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