Vita Group Sells Its 107 Telstra Shops To Telstra
Telstra’s largest outlet licensee, Vita Group, is selling its Telstra-branded stores to Telstra, after the telco announced plans earlier this year to end its 26-year deal with the retail group.
The 104 single-retailer stores, as well as Vita’s Sprout business, will change hands for $110 million in cash consideration.
Telstra will also take on the employment contracts for Vita’s 1,100 staff members.
“This is a good outcome for all stakeholders and the fact that we have been able to reach transition arrangements that provide certainty of next steps and ensures value for all parties is positive,” said Vita Group CEO Maxine Horne.
“Vita has enjoyed a long-term strategic relationship with Telstra, in which over the last 26 years I believe both parties have gained significant benefit from one another.
“I am exceptionally proud of our people and the business we have built from the very first Fone Zone store in 1995 through to the significant portfolio of Telstra stores that our highly skilled Vita ICT and support team run. In addition, over this time, we have also created and developed the brand of Sprout Accessories, one of the largest accessory providers in Australia.
“All of this, in my opinion, will be of immense benefit to Telstra. With all that is happening across both the ICT and aesthetics categories, the time is right for both parties to move forward with their respective strategies,” she said. “In Vita’s case, this is focusing on the growth opportunity we have in front of us, with the Artisan network.”