Office and stationery supplier WC Penfold, reeling from a changing marketplace dominated by such mega-suppliers as Officeworks, is undergoing a $5.5million restructure, with $2million set aside to retire the company’s primary debt. The balance will be used to meet the company’s capital requirements.
The shake-up also sees Helsman Capital Fund, as well as an investment pairing of former Blue Star Office Supplies CEO Ivan Hodges and Duesburys Chartered Accountants partner Stephen Brennan, become major shareholders in the company. The two parties will share 72 per cent of WC Penfold, while the company’s 27.1 per cent stake in sheetfed printing company Penfold Buscombe will be divided up amongst WC Penfold’s existing shareholders.
Rumors have been rife over the past months about the company’s future and possible takeovers since the 173-year old company announced a $2.2million loss for the year ending March 31, 2003.
Originally, Harvey Norman had been named as a possible suitor for WC Penfold, a rumour that Harvey Norman Chairman Gerry Harvey emphatically quashed back in June, despite reports of interest being shown by some of Harvey Norman’s directors.