A possible sale is looking more likely

The CEO of Baumax Michael Hürter has been emphasizing all along that his ailing company doesn't need any outside investors. However, the Baumax's creditors seem to see things a little differently. According to various corroborative reports, the deadline for offers for the purchase of Baumax has been once again extended until the middle of January 2015. The 35 banks and leasing companies involved definitely want to sell the Austrian DIY operator. There appear to be approximately ten interested parties including, as reported, the three largest DIY operators in Europe: Adeo Group, Kingfisher and Obi. Not only is a total sale of the company possible but also a break up into individual country subsidiaries. From the eight countries in which Baumax has been active up until now, the business involvement in Turkey was stopped in August 2014, and the country subsidiaries in Bulgaria and Romania were sold. The stores in Romania were bought by the French competitor Adeo. Pre-insolvency proceeding are currently going ahead in Croatia, which just leaves, apart from the home country Austria, the Czech Republic, Slovakia, Hungary and Slovenia. Analysts also see the Hungarian business sector as particularly critical and very difficult to sell.

Sergio Giroldi, CEO of Obi, is said to have held talks regarding a possible takeover of Baumax in mid-December 2014 in Klosterneuburg. At the same time the Austrian media reports a continuing negative sales (€ - 3 mio to € 102 mio ) and earnings development (€ - 9 mio) for Obi in Austria, and particularly in Slovenia, for 2013. Apparently, the same problems have continued into 2014. On the one hand, both the sale of the operative business, as well as just the leased properties is under discussion, while on the other hand, bids are possible for the whole company as well as for the individual country subsidiaries. Directly related to all this, is the question of whether Baumax can remain as an independent brand after the sale. The disappearance of the brand name "Baumax" will most likely be the subject of many a political and public discussion, especially in Austria. According to an insider, a major ordeal lies ahead of the company. Baumax currently has liabilities of approximately € 500 mio as well as a negative…