Smiths City waits for shareholders to approve sale of business
Smiths City said it is now only waiting for shareholder approval before it can proceed with the conditional agreement it has entered into with Polar Capital.
The furniture and electronics retailer announced it has already made progress against the conditions for the sale of its business and will update the market more fully tomorrow.
Smiths City said earlier this week it will sell its retail and finance operations to investment company Polar Capital for around $60 million.
As part of the acquisition, Polar Capital will acquire Smiths City’s assets and existing liabilities, which include commitments made to customers who have paid deposits or are waiting on delivery. The sale is expected to net around $8 million.
Seven of Smiths City’s 29 stores will not be included in the sale and will close, following a strategic review.
Smiths City yesterday clarified that the proposed sale to Polar Capital is conditional on purchaser finance being confirmed; Smiths City shareholder approval and Smiths City financier approval.
Two of those hurdles have now been cleared, and the retailer is currently only waiting on shareholder approval to finalise the agreement.
According to Smiths City, the final number of stores to be sold is dependent on lease transfers and new lease terms being agreed for those transferring stores. Around 25 per cent of staff will lose their jobs from the deal.
The retailer did not disclose which stores will close.
Smiths City chair Alastair Kerr said the COVID-19 pandemic has delivered a material and significant shock to the business.
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