By Geoff Senescall
Sir Roger Bhatnagar is poised to re-enter the retail appliance market through the purchase of the Hill and Stewart chain.
The Auckland-based businessman, who earlier this year took the opportunity to quit his remaining holding in Pacific Retail, said last night he was confident of making the acquisition.
However,
the deal had not been signed and there were several other bidders. Hill and Stewart - with 12 appliance stores dotted around the North Island and annual turnover or about $30 million - has been losing around $2 million a year.
But Sir Roger believed he could turn the struggling retailing chain around. "I know what to do and I can fix it," he said. Some stores would be closed and some new ones would be open. Retailing was all about "location, location location." Expansion would take place. "In a business you can't stay the same; either you go up or down," he said.
Sir Roger is an experienced retailer. He was responsible for turning around the Noel Leeming appliance chain after buying it in 1991 from Smith City, which was then in receivership. Noel Leeming later listed on the sharemarket, then merged with fellow retailer Bond and Bond to become Pacific Retail, which is now controlled by the Auckland entrepreneur Eric Watson.
The prospect of Sir Roger returning to retailing through Hill and Stewart was welcomed by whiteware manufacturer Fisher and Paykel. Spokesman Richard Blundell said Sir Roger was a "very good retailer and would be positive for Hill and Stewart." Sir Roger had been successful for Fisher and Paykel in the past when Noel Leeming was a franchised F and P dealer, he said.
Hill and Stewart, through its various ownership structures over the years, had been a good supporter of Fisher and Paykel. Mr Blundell said he was keen to see the asset go to good hands. Hill and Stewart is owned by a syndicate of four individuals. However, Fisher and Paykel, through its finance arm, does have an interest in the retailer through loans.
Hill and Stewart is one of three major chains which have an exclusive whiteware dealership arrangement with Fisher and Paykel. The other two are Farmers and Harvey Norman.
Sir Roger hoped to have the deal sewn up by the end of the week. He did not disclose how much he is paying. But he is purchasing it alone. His long-time business associate Greg Lancaster is not involved. Mr Lancaster now owns a car dealership in Christchurch.
