Abaco Markets yesterday told The Tribune it was “positioned to look at growing business next year,” despit recording a $25 million loss for the year ended February 1, 2003, as the company moves to negotiate a debt rescheduling with its bankers and preference shareholders. It is seeking to extend the redemption date on the debt owed to the latter, which currently becomes due in 2005.
In an exclusive interview with The Tribune, David Thurlow, Abaco Markets’ president, said some $24.1 million of the loss incurred by the BISX-listed retail conglomerate had resulted from one-off non-cash items and charges, such as the impairment of goodwill, real estate and fixed assets, with the company achieving its objective of “cleaning up the balance sheet.” Of the $16.6 million in goodwill Abaco Markets previously had from acquisitions made during the last economic boom, the company has written off some $11.5 million.
Mr. Thurlow added that as part of its strategy to rebuild its capital base, Abaco Markets was today set to complete the sale of Bellevue Business Depot office products division and its real estate holdings in Abaco and Freeport to Robert Osbourne, the executive responsible for that business, in what is a management buyout. The price being paid for Bellevue was not disclosed.
Mr. Thurlow told The Tribune that the sale of Bellevue Business depot, the second of three stages on Abaco Markets withdrawal from the office products business, would reduce debt and concentrate on its two core divisions, the food distribution unit, which generates 80 per cent of total business, and the Caribbean Franchise unit.
Source: Neil Hartnell, The Tribune
