Laundry and Cleaning News - July 6, 2006
Johnson Service Group is disposing of, on a sale and leaseback basis, 79 retail trading properties currently occupied by the drycleaning division for the sum of £26.5million in cash on completion to Oceandale Investments and Oceandale Securities.
According to the group, proceeds from the sale will be used to reduce bank borrowings. The operating leases, signed in the name of Johnson Cleaners UK Ltd., are for 15 years with a break clause after 10 years. The gross and net book value of the properties is £13.2m and £12.3m respectively.
Trading conditions for the drycleaning division continue to be unpredictable, says the company in its pre-closing trading statement for the half-year to 30 June 2006, A cost reduction exercise is underway at all levels of the business, which should result in margins improving in the second half of the year.
Discussions about the future of the Johnson Service Group’s drycleaning businesses are continuing with an interested party that may, or may not, lead to an offer being received.
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Thursday, July 06, 2006
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