A POTENTIALLY damaging split within the family owned Shaws retail chain is once again on the cards following a breakdown in talks on the sale of a 30 per cent stake held by Sheila Shaw and her two sons.
It is understood that Ms Shaw and her sons have once again served her nephew and company managing director Jonathan Shaw with a legal notice of their intention to sell their shareholdings.
This follows the failure of protracted negotiations over the past year or so on a deal to produce an outcome acceptable to Ms Shaw.
The other shareholders in Shaws have pre-emptive rights on the stakes held by Ms Shaw, who holds 7 per cent, and her sons Clive and Norman, who own 23 per cent between them.
Ms Shaw is in her 80s and was willed the shares by her late husband, Billy.
Given that extensive talks have already been held between the two sides, it seems unlikely that a deal can be reached with the family.
As a result, Ms Shaw and her sons have instructed corporate advisory firm Mazars to seek third-party offers for their stakes. They have also engaged law firm Orpen Franks.
Shaws, which comprises 15 department stores, a wholesale arm and property interests, is believed to have been valued last year at about €90 million to €100 million.
This values the stake of Ms Shaw and her children at up to €30 million.
They are now prepared to sell their shares outside the family, potentially putting the 135-year- old business in play as an acquisition target.
Shaws has two main operating businesses. Shaw Sons Ltd runs seven stores, while WG Hadden Ltd runs four stores and Haddens shopping centre in Carlow. They posted a combined €6.9 million in losses in the 12 months to the end of January 2010.
This reflected a double-digit percentage drop in sales, actuarial losses on defined benefit pension schemes and property charges.
