A SPLIT has developed within the family-owned Shaws retail chain – famous for its “almost nationwide” advertising slogan – after one of its biggest shareholders decided to sell her stake in the business.
It is understood that Sheila Shaw, who with her immediate family owns almost one-third of the popular retailer, last Tuesday served her nephew and company managing director Jonathan Shaw with a legal notice of her intention to sell her holding in the company.
Shaws, which comprises 15 department stores, a wholesale arm and property interests, is believed to have been valued at about €90 million, putting the stake of Ms Shaw and her children at about €30 million.
It is understood that Ms Shaw first signalled her desire to sell her shares some months ago and has now moved to formalise the process. Her decision to serve a notice of transfer document is believed to have surprised Mr Shaw and created significant tensions within the family, which keeps a low profile in the media. Two of Ms Shaw’s five children work in the business.
Mr Shaw, who worked for British retailers Littlewoods and Sainsbury’s before joining the family business in 1990, and other shareholders could move to purchase Ms Shaw’s stake. But it is understood that Ms Shaw is also prepared to sell her shares outside the family, which could effectively put the 135-year-old business in play as an acquisition target.
Shaws is one of the Republic’s best known mid-market department store operators. It has a loyal customer base in the provincial towns where it operates and employs almost 1,000.
It was founded in 1865 by Henry Shaw, great-grandfather of the current managing director and began as a drapery shop in Mountmellick, Co Laois. Its first big store opened in Portlaoise in 1890.
In the 1960s, the firm moved into the wholesale business and in 1976 it acquired Haddens, a “thriving business” with shops in Carlow, Wexford and Dungarvan.
The Shaw family has invested significantly in the business over the past 15 years, opening new stores in Tralee, Drogheda and Ballina and modernising and rebuilding outlets in Dungarvan and Wexford, where it spent €12 million on a refurbishment. It opened a new head office in Portlaoise in 2005, centralising all buying and management functions.
The firm has two main operating businesses. Shaw Sons Ltd runs seven stores and made a loss after tax of €68,040 in the 12 months to the end of January 2009. Its sales were flat at €26.5 million, but a rise in administrative expenses pushed the company into the red last year.
WG Hadden Ltd runs four department stores and Haddens shopping centre in Carlow. Its turnover fell last year by 13 per cent to €18.1 million. The company made a pretax loss of €1.2 million and also took a writedown of €3.7 million on its property assets.
WG Hadden had accumulated profits of €7.6 million at the end of January 2009 and the book value of its property was listed at €21 million.