Sears sells Shoe Express stores at pounds 33m loss
Tuesday 16 December 1997
Mr Green is buying 185 of the Shoe Express branches though it is not clear if he will retain the trading name or continue to run them as shoe shops. Between 75 and 100 of the stores will be converted to Mr Green's Mark One format which specialises in discounted women's fashion. A study will be undertaken to decide the best use of the remaining outlets.
The deal means Mr Green, a former chairman of the What Everyone Wants clothing chain, now controls Shoe Express, Mark One, five branches of the Owen Owen department stores and a stake of about 15 per cent in Sports Division, the sports group which acquired Olympus Sports from Sears. Sports Division is due to float on the stock market next spring. Asked about his burgeoning retail empire Mr Green, said: "It's progressing nicely."
Mr Green has also been tipped as a possible buyer of Shoe City, Sears' loss-making out-of-town shoe superstores. "Anything's possible," Mr Green said yesterday.
However, he said there were no plans to integrate the disparate interests into a single group. Each will retain separate management. Mr Green said: "The entrepreneurial element is in acquiring the business and knowing what to do with it when you've got it." He said the deal represented a short cut in his plans to expand Mark One. "To open 70 to 100 stores is two to three years work."
Alnery, a company controlled by Mr Green, is paying Sears pounds 8.5m for pounds 32.5m of assets. It will also manage the 136 remaining Shoe Express branches, which will be closed by Sears by the end of January. This will give rise to the loss of around 500 jobs.
The total cost to Sears of the disposal will be around pounds 65m, slightly less than expected. Shoe Express made losses of between pounds 17m and pounds 18m in the last year on sales of around pounds 165m.
Shoe Express has been a disaster for Sears' management. The cheap, self- service format was derived from a successful US equivalent and hailed as a potential saviour of the group's footwear operations. Founded in 1992, Sears spent millions on store conversions and promotions but it failed to take off.
The sale means Sears has only Shoe City and Cable & Co left to sell of its British Shoe Corporation subsidiary. Sears shares closed 2.5p up at 49.5p.
Wellcome Image Awards: The most striking images from the world of science, including breast cancer cells under chemical attack and a photographer’s own kidney stone
Missing Malaysia Airlines plane: 'All passengers' under investigation, police say
Bob Crow death: 'Admired by his members, feared by employers' - Tributes pour in for RMT union leader and 'working class hero' Bob Crow
Oscar Pistorius murder trial: Athlete repeatedly sick as court hears 'graphic details' of Reeva Steenkamp's post-mortem
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
- 1 Pakistan vs Paul Smith: Sandal-wearers bemused by famed British designer's attempts to sell traditional Peshawari chappal-style shoes for the distinctly untraditional sum of £300
- 2 Family forced to flee home after discovering 'terrifying' nest of spiders in bananas
- 3 Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 4 Russell Crowe's Noah banned in three Arab countries before worldwide premiere
- 5 Bob Crow death: 'Admired by his members, feared by employers' - Tributes pour in for RMT union leader and 'working class hero' Bob Crow
iJobs Money & Business
£1000 per month: Inspiring Interns: The company works with Tier 1 FTSE 100 Ban...
£35000 - £60000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£60000 - £80000 per annum + BONUS + BENEFITS: Harrington Starr: A top, City ba...
VOLUNTARY ONLY - EXPENSES REIMBURSED : Reach Volunteering: Fantastic opportuni...