WHS - Warehouse Group

[Balance]

"All the property sale & leaseback deals done to keep the group solvent5 (and paying dividends) have very long tail lease & rental liabilities - hundreds of millions of dollars."

Balance, Im not sure that you understand that leases are renewed every several years, at that point the tenant can vacate and end the lease. Or maybe you do

The Warehouse had $802m of lease commitments as at 30 July 2023, with $99m to be paid in 2024. So looks like 8 years of lease liabilities on their books.

The Warehouse typically sold their properties (land & buildings) to investors/developers with sale and leaseback arrangements - anywhere from 5 years to 10 years. That's what I was referring to as the long tail lease liabilities.

[nztx]

Go woke, go broke - the warehouse is an excellent example.

Hard to believe that the company once had a market cap of over $3 billion.

Bet Foodstuffs are glad now they jumped out a few years ago .. even at a discount

Didn't we see what is now becoming reality coming, with Costco on the way some time back and other big competition like Amazon rumbling away on the horizon ?

The warning signs were around Covid, The Online WHS / Marketplace not firing and WHS jetisoning the expensive clip on's at peppercorn prices ..

The old story of evolution .. those who don't or fail to read the signals invariably go where ?


Will it be a take-out, or administrators further down the track as the curious can of struggling worms continues to loose altitude ?

[Balance]

Bet Foodstuffs are glad now they jumped out a few years ago .. even at a discount

Didn't we see what is now becoming reality coming, with Costco on the way some time back ?

And ikea on the way.

[Rawz]

Dont forget KMart and Temu who are killing WHS

[winner69]

As most of you predicted shareprice less than $1

Could be a buck a share …WHS where everyonebgets a bargain

[Sideshow Bob]

Could be a buck a share …WHS where everyonebgets a bargain

Would they be a bargain at $1........

Computer says no.

[mike2020]

Wasn't WHS also viewed as a land banker at one point? I have not held in a long time.

[Balance]

Wasn't WHS also viewed as a land banker at one point? I have not held in a long time.

They certainly were but not much of that left.

I know one of their planning staff who became a multi-millionaire by buying land next to where the Warehouse planned to open. That was many years ago though - during the 1990s and early 2000s.

[malreid]

Apparently the offshore outfits have been doing well in NZ though, so it looks like an active choice from consumers to swerve the warehouse in favour of other stores.

I wear my guilt with pride... LOL

[whatsup]

ATL today @ .97 !!