Proof Positive Thomson Disposal PRN
If proof positive were needed that Thomson is definitely trying to dispose of PRN take a look at this story yesterday from Dow Jones…
The activities Thomson is planning to divest include its Grass Valley broadcast equipment unit and Premier Retail Network in-store TV network operations.
The group has received “a certain number of expressions of interest” in the activities, Chief Financial Officer Stephane Rougeot said, adding that in the current environment it is “extremely difficult” to give a timeframe.
Rose said Thomson will give more details about its strategic revamp when it reports 2008 earnings March 10.
Stephane Rougeot seemingly agrees with us, remember that we said “In the current economic climate and in reality with only one large customer the FOR SALE sign above PRN could be there for a long, long time” in our story ‘PRN – Yours For USD 80 Million‘ that we posted back in November 2008.
With Circuit City in the US having gone that’s already one less customer for PRN and if you look at some of their other customers; ACME, Albertsons, Best Buy, Carrefour, Costco, Jewel-Osco, Pathmark, SAM’S CLUB, Shaw’s, ShopRite, Star Market you just know that 2 or 3 of them won’t make it through this recession.
Despite all protestations WalMart ARE dramatically decreasing their business with PRN and this too of course makes PRN a much less attractive acquisition target.
January 31st, 2009 at 19:25 @851
I agree with you that Thomson may be a bit optimistic with their pricing and I think that whatever offer they take will be telling of how much they need the cash.
While the electronics market is certainly going to be one of those hardest hit, it’s rather unlikely that any other retailers on the list you just railed off will drop off considering what type of business they operate.
With a recession people migrate their shopping to discount and lower-priced options like Walmart, Sam’s and Circuit. Supermarkets have also done comparatively well in recession periods, picking up the people who no longer eat in restaurants.
It’s also important to note that four of the retailers you listed: ACME, Albertsons, Jewel-Osco and Shaw’s are all owned by one company: SUPERVALU.