If the Australian Competition & Consumer Commission (ACCC) decides to block Woolworth’s bid for 80 Franklins store, the beleaguered discount chain could go into receivership.
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Ian Cornell, CEO of Franklins, revealed that receivership was a real option following concerns that regulators will block the proposed buyout. Supermarket giant Woolworths already dominates the narrow Australian grocery sector with Coles Myer, and the ACCC has made it clear that it will attempt to increase competition by boosting the sector share of rival chains.
If the deal goes ahead intact, then Woolworths can expect to add 9% to its existing annual revenue.
