Top news this morning is that Fox Group is selling its Appliance Shed assets to TWG and the Noel Leeming Group (NLG).
The sale comes following Fox Group’s strategic review of its portfolio and will see the Appliance Shed sites in Glenfield, Henderson and St Lukes becoming Noel Leeming Clearance Centres while the Appliance Shed site in Manukau will become a Torpedo7 store.
The Appliance Shed "brand outlet" stores will begin to transition to their new store formats from 31 August.
For Fox Group, it's clearly been an issue of size that has driven the decision.
Guy Howard-Willis, Chairman of Fox Group, says in a statement: “While the Shed is currently profitable and sustainable, the fundamentals of the appliance market are driving an ever-increasing premium for scale.
"We’re very pleased therefore, to have found such a good home for the staff and customers of the Shed in Noel Leeming Group, the market leader in New Zealand.”
NLG is also pleased with the outcome.
With the current Noel Leeming Clearance Centre in Penrose having "exceeded expectations", Tim Edwards, CEO of NLG, says in the same statement:
“This deal with the Appliance Shed offers us a great regional footprint to provide the high-quality clearance retail experience our customers are looking for from our brand.”
Another point worth making is that Appliance Shed is currently a Narta member.
Appliance Shed was founded in 2001 by Dave McNeill and Mark Campbell with Seconds World in Sydney as a model.
Stocked with "famous brand" seconds, the Sheds were painted their signature yellow in 2003 and Mike King became their ambassador.
Appliance Shed was bought in 2012-2013 by Fox Group, which already owned DTR.
For more on the genesis of Appliance Shed, read our article on Dave McNeill here.