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Masters....GONE!

Discussion in 'Property Market Economics' started by Bayview, 18th Jan, 2016.

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  1. Bayview

    Bayview Well-Known Member

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    Heard on the radio this morning that the hardware chain - Masters - is to be closed down/sold off due to unsustainable losses of over $600mill last year. Not sure about previous years but must have been ordinary I suspect.
     
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Announcement is on the Masters website.

    .....and they will be honouring gift cards.
     
  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I read about it in the paper this morning.

    The question I've got, is there an opportunity for the average proprety investor in this?
     
  4. MTR

    MTR Well-Known Member Premium Member

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    Me too, who next??
     
  5. Bayview

    Bayview Well-Known Member

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    It may cause Woolies shares to go down; so a good time to buy some after the drop, possibly.
     
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  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Cheap reno goods? Fingers crossed for massive sales :)
     
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  7. Biz

    Biz Well-Known Member

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    It's a shame, I didn't shop there much but at least there was some competition for the rip off merchant Bunnings.
     
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  8. York

    York Finance Broker Business Member

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    You have any ideas PTBear?
     
  9. Redwood

    Redwood Well-Known Member

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    What a massive stuff up - if you are going to step up and buy every piece of land across from Bunnings at least have a realistic 10 year plan.....these guys are hopeless. Sounds like they received some expert advice on stock mgt and sales from Dick Smith.

    Cheers Ivan
     
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  10. Coota9

    Coota9 Well-Known Member Premium Member

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    Wesfarmers and specifically Bunnings will be rubbing their hands together.
    Will be interesting to see how it plays out with either the sale of the business to another party(highly unlikely given its recent performance) or winding down the business completely.
    Either way I think that they will be having some deep discounts moving forward to make their balance sheet look a bit better no matter what happens.
    Also site leases and terms could be interesting if they were to dissolve the business.
    But working and managing a "big box" retailer for some 25 years my thoughts go to their 6,000 employees who may be looking for another job in the near future.
     
  11. skater

    skater Capitalist Premium Member

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    Their new Penrith site just opened this weekend. Lots of adds on at the movies for them too.
     
  12. jaybean

    jaybean Well-Known Member

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    If I were Bunnings, I'd be jacking up prices big time. No more competition...I'd certainly take advantage of that.
     
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  13. Biz

    Biz Well-Known Member

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    So they have 2 poor options in front of them now.

    1: Sell the business at a massive loss but who would want to even buy it?

    2: Close all the stores and sell/lease the sites. This is going to take ages as they are all purpose build massive bulky goods sites. I can't even think of another retailer (besides Bunnings) who would need sites like those. Maybe an opportunity for Costco to roll out heaps of stores at a fire sale price?
     
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  14. See Change

    See Change Timing Lord Premium Member

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    another casualty in the battle between big retailers .

    In Sydney we go to bunnings but the closest big hardware store near our weekender is masters at heatherbrae .

    For me bunnings is a much better store , better choices , wider range and they seem to act as a preferred employer for experienced tradies who don't want to ( or cant ) work in their trade any more . level of knowledge in staff is much higher than at masters.

    big complex built 2-3 years ago with other retailers in the same complex , BCF etc who will obviously be affected as well .

    wonder if this is a move by their American partners to close up and then cherry pick the profitable stores . one would assume that bunnings would be interested in some well positioned stores , especially if the rents are good ..

    It reminds me of the battle between ToysRUs and World for Kids a few years ago . Luckily our kids were kids when that was going on , so lots of choice .

    Cliff
     
  15. Coota9

    Coota9 Well-Known Member Premium Member

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    Lots of the Masters sites are very close to current Bunnings sites due to WOW wanting to take Bunnings on head to head.
    Costco may be a good option but I think if it become a sell off of sites that they would be cheery picked by businesses.
     
  16. Sonamic

    Sonamic Well-Known Member

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    Isn't Bunnings expanding to England?
    Have to feel bad for the staff and the Property owners.
     
  17. Redwing

    Redwing Well-Known Member

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    Exactly, I recall the Bunnings store at Joondalup sat vacant for ages when Bunnings moved into a new store a few kms down the road (the old one may even still be vacant, who knows)
     
  18. Biz

    Biz Well-Known Member

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    It's not just masters closing but also Home Timber & Hardware, Thrifty-Link Hardware and Plants Plus from what I understand - 500 stores :eek::eek::eek:
     
  19. jaybean

    jaybean Well-Known Member

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    Holy crap those are a lot of stores. Anyone know what the distribution by state is?
     
  20. Aconis

    Aconis Well-Known Member

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    Old Joondalup Bunnings has been turned into a 2nd hand car yard.