Wesfarmers shares fell 6.4% in the March quarter (and 6.7% from its peak in the quarter of $44.56) as the new management started hacking and slashing at the mistakes of the long reign of former CEO, Richard Goyder.
A write down of the Homebase UK hardware adventure, more write downs on the value of the Target chain in Australia, finishing the sale of the Curragh coal mine in Queensland (after $850 million was lopped from its value a couple of years ago) and revealing plans to spin off the Coles supermarket chain.
Now the new CEO Rob Scott has taken the next step in ending the disastrous Homebase UK foray, with corporate advisers said to be touting the business.
Wesfarmers has advisers from investment bank Lazard approaching potential Homebase buyers as they review of its British and Irish retail division.
Lazard advised Wesfarmers on the $700 million purchase that has already cost more than $1 billion in impairment losses and provisions for rtading and stock losses.
At that rate Lazrds should be doing the probable sale for nothing.
The permanent closure of more than 250 Homebase and Bunnings stores would expose Wesfarmers to up to $2 billion of exit costs, including around $1.8 billion of lease liabilities, according to weekend media reports.
