DJs to review Myer merger

 

David Jones, Jessica GomesDavid Jones has opened the door on a proposed merger with rival Myer.

David Jones on Tuesday said it has appointed consultants to help it review the proposal, including any benefits for the two retailers.

The review will also assess the benefits of David Jones proceeding on a standalone basis.

Nonetheless, the latest statement from David Jones represents a significant shift for the company after it stated last year there would be no fair value to its shareholders in merging with Myer.

David Jones on Tuesday said that, given the Myer proposal was based on a share swap, and if talks between the two companies proceeded, an assessment would be made of Myer’s business, requiring Myer’s co-operation.

David Jones chairman, Gordon Cairns, said it was imperative the company undertook initial strategic work prior to talks with Myer.

“It will enable us to have a full understanding of the value that can be delivered to our shareholders if David Jones were to merge with Myer, versus the value that can reasonably be expected to be delivered to our shareholders if the company continues with its Future Strategic Direction Plan on a standalone basis,” Cairns said.

“Once this work is completed, we will be in a position to engage in a meaningful way with Myer.”

The latest developments in the proposed merger follow David Jones CEO Paul Zahra reversing his decision to quit the company, and Myer CEO Bernie Brookes’ re-appointment to his job.

AAP

Comments

1 comment

  1. Christine ohehir/park posted on March 19, 2014

    David jones and MYER should defiantly merge so they can start working together side by side instead of against each other These 2great Australian iconic brands That most of us grew up with at some stage in our family history are as important to the landscape of Australian retail As the Sydney swans or Hawthorn is to football Or the west gate or Sydney harbour bridge to our city's Or vegemite ,meat pies ......get my drift Here's how I see it If these 2 brands want to not just survive but thrive And hold the crown Of king and queen of Australian retail And hold themselves in good steed To ward of the massive flood of new players landing on our shores THEY NEED TO WORK TOGETHER SIDE BY SIDE AND FIND THERE STRENGTH BY CELEBRATING THERE DIFFERENCES ALLOW ME TO SHARE MY VISION with all the warmth and PASSIOn ii feel in my heart. As a fellow rag trader for the legacy. These great men created for the customer they loved and wanted to serve and satisfy with the right merchandise at the right price It is with this sentiment that I feel a calling to contribute to these merger discussions Here's how DAVID JONES /move forward as a branded store were everything is generically branded EG DAVID JONES MENS JOCKS BRANDED (What man wouldn't ) Crisp white sheets and towels Fashion Tea Coffee Jam YOU NAME IT ALL BRANDED DAVID JONES AND WAIT FOR IT MYER /move forward as the biggest Australian department store holding all the great Australian brands EG Bonds Sheridan Sass and bide DAVID JONES. would hold all the overseas labels NOW TO DO THIS THEY NEED TO MAKE A SWAP of merchandise between the 2stores HERES HOW STEP ONE GIVE ALL AUSTRALIAN LABELS TO MYER FROM DAVID JONES IMMEDIATELY GIVE ALL THE OVERSEAS LABELS FROM MYER TO DAVID JONES STEP 2 All of the Australian labels Would product developand manufacture Product back to DAVID JONES BRANDED UNDER THE DAVID JONES LABEL EG BONDS go to MYER then turn around and make and supply there key product Development range to DAVID JONES BRANDED DAVID JONES same with shereden And any other Australian brands that MYER would now exclusively stock This opens up the whole industry To work with supplying both stores Which is good for everyone creates more industry jobs More buying power More ❤️ And $$$$$$$$$$$$$$ It cuts out all the competition between the 2stores instead of competing against each other They are now Complimenting each other and building a unique alliance That would strengthen both brands bottom lines And both would be set to bloom for future growth and open the way to endless possibilities for future trading Think about it ALEX PERRY has gone back to MYER But he is set up to product develop under the DAVID JONES. BRAND for DAVID JONES without compromising his brand THATS PRODUCTIVE LORNA JANE Retail in MYER product develop and supply A key range TO DAVID JONES under the DAVID JONES BRAND that's productive LIVING DOLL WISH MINK PINK they all go to MYER as Australian brands Then use there expert set ups to turn around and product develop for the DAVID JONES BRAND While retailing under there own labels at MYER That's productive This scenario wipes out all the problems for everyone and the industry can get moving again with direction and purpose Supporting each other Increasing productivity and sales volume Profit Bottom line in every respect BUT WAIT !!!!! THERES MORE just INCASE I haven't convinced you yet to share my vision Here's a few more reasons why this works ,,,,,,, Oh damn !!!!! Of to play basket ball can't let the team down so I'll send what I've got for you so far and start the discussion Give it time to digest !!!!! And I'll be back for the second course ❤️retail

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