Rebel Sports owner Briscoe Group Ltd (managing director Rod Duke) is discussing the takeover of the franchise rights to the opposition 38-store Stirling Sports chain from Mark Taylor, whose listed RetailX business fell apart when receivers were called in to The Building Depot in September.
Mr Taylor, of Christchurch, took over his father Colin’s franchising business, listing it in 2000 as RetailX Ltd. It held management contracts with Stirling Sports and The Building Depot through a subsidiary, Retail Services Ltd.
Mr Duke said today Briscoe had offered to acquire the rights held by Stirling Sports Franchises Ltd, controlled by Mr Taylor through a family company, with several other smaller shareholders.
Briscoe would provide a range of centralised services to franchisees.Mr Duke expected an agreement could be concluded by mid-November, subject to due diligence.The Stirling Sports chain’s 38 stores reportedly generated $40 million of sales for the year to July 2004.
“We believe we can make significant contributions to the success of the Stirling Sports franchisees, by utilising our existing strengths in media arrangements, product sourcing, IT systems, stock management & many other facets of our operations. It also enables us to make a quantum leap forward in implementing our recently announced franchise network plans, to achieve market coverage beyond the major metropolitan areas,” Mr Duke said.
He announced plans for that network on 15 October. The current Rebel Sport chain will increase to 20 this month with the opening of a new store in Riccarton, Christchurch. Mr Duke said the company would continue to roll out large-format Rebel Sport stores in parallel with the new franchise initiative.Earlier stories:
4 October 2004: Retail Services to be wound up, RetailX to stay listed & be sold
1 October 2004: U: The names behind the action, the week to 3 October 2004 (New receivers at Building Depot)
24 September 2004: RetailX directors say company should stop trading
22 September 2004: RetailX postpones agm because of Building depot receivership
14 September 2004: RetailX trading suspension over, but future still fuzzy