Sears move hints at BSC sell-off
Sunday 26 January 1997
The move by Sears, coming days after it warned that its profits would be significantly lower than last year's pounds 100m, is the clearest sign yet that the company is preparing to dispose of BSC in the next few months.
The plan to turn a 600,000sqft site near the M1 in Leicestershire into Sears's distribution centre was to cost an estimated pounds 60m, but would have yielded immediate returns of around pounds 30m from sales of redundant warehouse space. It was central to Sears's plans to streamline its supply chain and produce savings of around pounds 8m by 2000, and contracts were on the verge of being signed.
However, this weekend Alan Oliver, Sears Group Properties development director, confirmed that the deal had not been signed and the plan had been postponed indefinitely. "It is all related to the restructuring of BSC. Until it is on a proper footing, it was felt that this was too big an investment to make," he told the trade publication Estates Gazette.
Instead, Sears plans to consolidate its womenswear distribution in Solihull, and look for a new distribution centre for Selfridges. BSC's distribution would remain unchanged, and the total cost of this alternative plan was put at pounds 12m.
A spokeswoman for Sears vigorously denied that the abandonment of the central distribution system for BSC and other Sears subsidiaries meant that the lossmaking footwear company was for sale.
When asked why the plans had been postponed, she said: "British Shoe has been through a long restructuring process, and we wanted to minimise further disruption to the business."
Liam Neeson's Downton dreams
Thriller is set in the secret world of British espionage
Bomber jacket worn by Mary Berry sells out within an hour
- 1 Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
- 2 Scottish independence: What you shouldn't tweet about if you want to avoid jail today
- 3 Scottish independence: Five reasons Salmond is secretly hoping for a 'No' vote
- 4 Isis plan to 'behead random member of the public' in Sydney thwarted by Australian police
- 5 Archbishop of Canterbury admits doubts about existence of God
Scottish independence referendum live: Clackmannanshire blazes the trail as 54% vote No while Yes trails with 46%
Scottish independence: Final opinion polls show undecided voters could swing result either way
Isis plan to 'behead random member of the public' in Sydney thwarted by Australian police
Scottish independence: Andy Murray backs Yes campaign in eleventh hour decision
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...
To £85,000 + banking benefits: Saxton Leigh: You will be expected to carry out...
Up to £90,000 + benefits: Saxton Leigh: Credit Risk Audit Manager required to ...