Woolworths paid a large premium to grow its presence in Australia through David Jones as part of former CEO Ian Moir’s ambitions to make Woolworths a leading retailer in the southern hemisphere, but the business overhaul was taking longer than expected, forcing the dealer to continue to lower the value of the unit.
His successor, Roy Bagattini, has embarked on a mission to improve David Jones’ bottom line by restructuring his debt, selling properties, and closing unprofitable stores.
“The strategic rationale at the time of the acquisition did not materialize to the extent initially envisaged,” Bagattini said in a statement.
“Although David Jones has successfully executed his turnaround, despite the Covid-19 disruptions, now is the right time for the business to operate under new ownership, while Woolworths refocuses on its core South African and Australian operations Country Road Group”.
