DYLEX ANNOUNCES PLANS TO SEPARATE INTO TWO COMPANIES
By Adnews Staff
Toronto-based specialty retailer Dylex Limited has announced a plan, approved by its board of directors, that will see the company separate into two units. One unit will focus on specialty fashion retailing and the other on neighborhood convenience stores. The plan remains subject to various approvals including shareholders approval and could take up to four months to complete. The plan would also result in Dylex's BiWay division becoming an independent company. Dylex said it will support BiWay's operations while the plan is implemented and will ensure it is financially stable when complete. According to chairman William Anderson, the board believes that two separate and focused entities will create improved shareholder value. Dylex had 1998 revenues of $1.1 billion of which $587.9 million was generated by BiWay and $489.2 million by its specialty fashion businesses. The five specialty fashion businesses include: Braemar, Fairweather, Labels, Thrifty and Tip Top. Dylex operates 287 BiWay stores in Ontario and Atlantic Canada and the remaining 350 stores under its specialty fashion business banners.