Retailers should welcome the £204m acquisition of the operating parts of retail software house Torex by private equity house Cerberus, said Richard Goodall, CEO of RBSretail.
Torex reported profits of just £4m on sales of £246m for 2006, but suffered exceptional costs of £195m. The AIM-listed share was suspended in January and subject to a Serious Fraud Office inquiry shortly after.
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Welcoming the deal, Goodall, a Torex reseller, said it was “very positive for customers and staff who have [been loyal] following the implosion”.
Goodall said 23 retailers, making up 75% of Retail-J users, are RBSretail clients. Retail-J is Torex’s top-end point of sales management system. Clients include Harrods and Selfridges, and French Connection has just started using it in its New York stores.
This week’s Cerberus deal gives it a chance to recapitalise the business and get rid of non-earning subsidiaries and products.
Torex chairman Steve Marshall said shareholders would lose out, but the deal was good news for customers, suppliers and more than 2,500 staff.
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