Cash Converters buys back Melbourne City franchise
Second-hand goods chain Cash Converters has acquired its Melbourne City franchise. This follows the Morley (WA) acquisition in October 2020 and is forecast to deliver a statutory NPAT uplift during the 2021 financial year.
Of the 37 Cash Converters stores across metropolitan and regional Victoria, 14 are franchised. The acquisition of the Melbourne City store strengthens Cash Converters’ corporate owned and operated store presence.
Cash Converters CEO Sam Budiselik, said “This is a continuation of our strategy to expand and enhance our Australian operations. Having not purchased a franchise store for several years, the successful acquisition of two stores in as many months is indicative of our ability to identify and act upon opportunities rapidly.
“We thank the previous licence holder for their many years of dedication to the Cash Converters network across both Australia and New Zealand.”
Cash Converters will continue to discuss franchise acquisitions with franchisees and expects to see more completed deals in this and future financial years.
In October 2019 the second-hand goods retailer agreed to pay $42.5 million in compensation to 48,000 customers in a settlement following allegations it breached Queensland credit laws.
It was a tough year for Cash Converters which a month earlier saw the CFO Martyn Jenkins exit the business a week after the retailer and payday lender reported a $1.7 million loss for FY19.