Bunnings boss warns of Masters dump

MELBOURNE — Bunnings Warehouse CEO John Gillam has warned that an “aggressive liquidation” of the troubled Masters Home Improvement’s inventory could negatively impact margins for the whole industry. The joint venture, which partners Woolworth’s and Lowe’s have agreed to pull the plug on,  is still seeking a buyer, and faces the prospect of a fire sale. According to the Australian Business Review, the result could be an “avalanche of hardware stock being dumped on the market, at heavily discounted prices that could send shockwaves through the $50 billion [Australian] hardware and home improvement sector.” Gillam also confirmed long-running speculation that Bunnings is eyeing some of Masters’ sites: “There are 15 or so that we are interested in and some of those bring forward areas we will have long term plans to have stores in, others are replacements.”