Peter Stevens finds new owners, but it’s not all good news
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Embattled motorcycle dealership giant Peter Stevens has been saved, with new owners swooping in to buy the company. But it’s not all good news, with five popular stores set to close.
Major rival Motorcycle Holdings will acquire seven Peter Stevens and Harley Heaven stores, while the Joe Rascal Group will acquire four stores.
Motorcycle Holdings will acquire Peter Stevens in Dandenong and Adelaide, Savage Motorcycles in Perth, and Harley Heaven in Sydney, Penrith, Perth, and Adelaide, and Joe Rascal Group will take control of Harley Heaven in Dandenong, Ringwood, and Melbourne, and Peter Stevens Ducati in South Melbourne.
This means that Peter Stevens in Ringwood, Geelong, and Blacktown will all close, as will Harley Heaven Blacktown and Melbourne City Triumph.
ASX-listed Motorcycle Holdings already owns 45 outlets across the Australian east coast and New Zealand, with its biggest presence lying in Queensland. But the acquisition of seven of its key rival stores means it will establish an even bigger footprint across the country.
“This is a transformative acquisition for our business,” said Motorcycle Holdings CEO, Matt Wiesner. “It allows us to enter the key markets of Perth and Adelaide, in which we currently do not operate.”
Wiesner also added that the move “protects the integrity of the brands and avoids the disruption that would result from a disorderly liquidation of inventory into the market.”
According to a media release from Motorcycle Holdings, the deal will be worth somewhere in the $7-9million range, subject to further formalities.
Motorcycle Holdings owns the TeamMoto, MCA Motorcycles, and Morgan & Wacker Harley-Davidson stores, as well as accessories wholesaler Cassons, and CFMOTO distributor Mojo Motorcycles.
Meanwhile, Joe Rascal Group, which is led by James Tonna and Barry Fitzpatrick, is excited about partnering with two major motorcycle brands.
“We’re thrilled to be able to acquire these stores and partner with iconic brands Harley-Davidson and Ducati,” said Tonna. “We look forward to integrating their expertise and offerings into our offerings, and we are confident this acquisition will drive significant growth and innovation for us in the years to come.”
KordaMentha, the administrator tasked with finding the buyers, is pleased with the outcome, but will continue to help employees of the stores that will soon be closed.
“We’re pleased to have found to highly credentialed purchasers in the Joe Rascal Group and Motorcycle Holdings Ltd, ensuring the Peter Stevens and Harley Heaven brands can continue and provide ongoing employment for around 250 employees,” said Craig Shepard of KordaMentha.
A KordaMentha press release also stated that “no offers were received” for the five stores set to close, and that “the administrators will assist employees from these locations during the transition to closure”.
Peter Stevens was founded in 1970 by Vincent Chiodo and quickly expanded into one of the biggest motorcycle dealership chains in Australia. It was most recently in the hands of Chiodo’s granddaughter, Jessica Chiodo-Reidy.
This article originally appeared on bikesales.com.au
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