WOOLWORTHS (Woolies) yesterday finally sold off its problematic David Jones Australian subsidiary, in a loss-making deal, but which will remove R17 billion in liabilities from its balance sheet.
Woolies announced plans yesterday to sell David Jones to an Australian private-equity firm, Anchorage Capital Partners, but its CEO Roy Bagattini, in a call to journalists, did not disclose how much the subsidiary would be sold for.
Bloomberg reported the deal to be worth around A$130 million (about R1.5 billion).
Woolies bought David Jones for R21.5bn in 2014, making the buy its biggest acquisition through which it aimed to create one of the leading retailers in the Southern hemisphere.
Bagattini said the investment over the past eight years had been painful for Woolies and he was excited about the sale.
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