Malz in Receivership

[aussiblue]

http://au.news.yahoo.com/thewest/a/21295279//

Auto parts retailer MALZ Motoring & Leisure Zone is in the hands of receivers after collapsing under the weight of an $8 million debt.

Receivers and managers KPMG told creditors this week that, at this stage, MALZ's four Perth stores would continue to trade. A buyer is being sought.

MALZ chairman Ray Della-Polina said the 10-year-old company had been attempting to develop two extra stores at Malaga and Joondalup.

"It's very disappointing," Mr Della-Polina said. "We didn't get the growth we planned and anticipated. There's been some significant road bumps over about the last four years which impacted on cash flow. We've been trying to raise some capital but . . . haven't been successful. The model works quite well but not with four stores."

The retailer was co-founded in 2004 by Mr Della-Polina, the former boss of car parts chain Marlows, after Super Cheap Autos bought Marlows for $25 million.

On top of auto parts, MALZ outlets in Cannington, Cockburn, Balcatta and Midland sell caravan and camping gear, gardening equipment and other leisure products.

The stores will continue to honour gift vouchers but will not issue more under receivership.

Secured creditor National Australia Bank is owed $2 million. MALZ shareholders are the biggest unsecured creditors through loans extended to the business. About $400,000 is owed to staff in the form of vouchers from sales competitions.

Administrator Kim Strickland of WA Insolvency Solutions said one party had expressed interest in buying the business. "We believe there's another couple as well," Mr Strickland said.

Mr Della-Polina's family trust was the majority owner of the retailer. His son Michael is a director and former Marlows executives Matt Conder and Des Ellis are shareholders and directors.

Unrestricted from competing against their old business, the directors launched MALZ less than a year after selling Marlows. They also revived Marlows' blue and gold branding for the MALZ stores.

Mr Della-Polina said he was open to having a future role in the business.

Also https://www.facebook.com/MALZmotoring?filter=1

Sad; one of my favourite tool and parts store.

[Road_Warrior]

Ah I was wondering WTF was going on! Their webpage has been down for ages.

[Road_Warrior]

To be honest I've wondered for a long time why they didnt expand out from the 3 stores they started with, they opened another at Cockburn and that was it, Marlows had shops all over Perth and the South West by comparison, in 10 years Malz opened only 1 new shop

Now we see that they've had cashflow problems, I'd say for a while which has hindered their growth. I often wondered how profitable it was delving back into that DIY mechanic offering that Marlows used to have, trouble is Marlows was from a different era when a lot more people used to work on their own cars, nowadays automotive consumption has moved ahead with consumerism generally and people generally don't **** around with their cars like they used to unless it is "accessory" type stuff, items which existing chains like Repco, Supercheap and the others offer as well - at quite cut throat prices.

Same deal with the camping and 4x4 stuff, they were competing against other well established chains that offered similar things, trouble is when you went to Malz looking for the goodies in their catalogues they either didnt have any or the shelves were half empty and you'd spend an hour wandering around looking for things because there was no staff around!!!

[DJR-351]

Originally Posted by Road_Warrior

To be honest I've wondered for a long time why they didnt expand out from the 3 stores they started with, they opened another at Cockburn and that was it, Marlows had shops all over Perth and the South West by comparison, in 10 years Malz opened only 1 new shop

Now we see that they've had cashflow problems, I'd say for a while which has hindered their growth. I often wondered how profitable it was delving back into that DIY mechanic offering that Marlows used to have, trouble is Marlows was from a different era when a lot more people used to work on their own cars, nowadays automotive consumption has moved ahead with consumerism generally and people generally don't **** around with their cars like they used to unless it is "accessory" type stuff, items which existing chains like Repco, Supercheap and the others offer as well - at quite cut throat prices.

Same deal with the camping and 4x4 stuff, they were competing against other well established chains that offered similar things, trouble is when you went to Malz looking for the goodies in their catalogues they either didnt have any or the shelves were half empty and you'd spend an hour wandering around looking for things because there was no staff around!!!

Back in the late 70s early 80s my mates and I built, or re-built, many an engine out of the Vic Park branch of Marlows, plenty of modified suspensions and exhaust's came out of there to.....***t! nearly everything came out of there...

[aussiblue]

I suspect it a legacy of past history - Ray Della-Polina having to sell Marlows - Rocca Bros to Super cheap for $25M to make a divorce settlement and then getting involved in expensive legal disputes with Super Cheap (never got to court as far as I know but I wonder if he ever collected all his sharef of the 25M).

[richo77]

Was wondering why theyve been paying a lease on an empty store for the last year at Malaga. Seems they were trying to raise the capital without sucess.

[Road_Warrior]

Anyone know whats happening with them now? Could be some stock clearances soon

[aussiblue]

Anyone know whats happening with them now? Could be some stock clearances soon
__________________

Hmmm






Hopefully for the sake of their always friendly and helpful staff the be sold as a going concerns and thing will continue on without too many hiccups.

[FTE217]

My sources advise Metcash have bought it - US company who own IGA - bought into Autobarn/Autopro groups year before last. Also bought a large aussie made distribution brake and clutch company called ATAP that turned into one of the largest National hard parts distributers, they keep aquiring to compete against Repco Supercheap.
Ray should have retired long ago and gone fishing, sorry he's had to go through another big turmoil in his business life.

[aussiblue]

Ray should have retired long ago and gone fishing

'

When I last spoke to him several years ago that was his intention - less work more travel with the new missus etc.

[b2tf]

Originally Posted by FTE217

My sources advise Metcash have bought it - US company who own IGA - bought into Autobarn/Autopro groups year before last. Also bought a large aussie made distribution brake and clutch company called ATAP that turned into one of the largest National hard parts distributers, they keep aquiring to compete against Repco Supercheap.
Ray should have retired long ago and gone fishing, sorry he's had to go through another big turmoil in his business life.

Yep Metcash have bought it and they are apparently still deciding whether to keep the brand or turn them all into Autopros.

ATAP is a handy resource but their freight costs are #$&$%*$*, same sort of story as what National Parts was as you would be aware Maurie.

[FTE217]

Thats it aussiblu - some silly bug gas just don't know when to pick up stumps accept its over, tuff lesson to learn.

Aust - you know I know, and whats funny having known ex atap owners very well was that NP was the big lesson for all in the industry yet they turned into one themselves LOL......at least they got the $$$$ and ran ! good luck to them.

[aussiblue]

Today's paper confirms the Metcash purchase and that for the time being the hope to retain the existing stores and staff with longer term intentions of selling them off as franchises.

[Phildo]

Originally Posted by Road_Warrior

Anyone know whats happening with them now? Could be some stock clearances soon

This.

Just got back from Malz Cannington.

Bought a new 18 ton hydraulic shop press for $210. This one also has a gauge to show the pressure (that makes it more expensive).

It's been three months since Malz went bust, and now they are getting serious about dumping off old Malz stock. I also bought a $140 creeper for $35 (ie it also folds up into a seat).

For anyone in Perth: it's worth going for a look. They're saying 40% off for the ex-Malz stuff, but feel free to haggle beyond that.

[b2tf]

Originally Posted by Phildo

It's been three months since Malz went bust, and now they are getting serious about dumping off old Malz stock. I also bought a $140 creeper for $35 (ie it also folds up into a seat).

For anyone in Perth: it's worth going for a look. They're saying 40% off for the ex-Malz stuff, but feel free to haggle beyond that.

They are going to rebrand them as Autobarns hence getting rid of the old stock.