A deal between a vacuum cleaner manufacturer and a cleaner wholesaler could result in the loss of up to $1 billion to the Australian retail sector and millions of jobs in the industry, according to a report released on Monday.
Key points:The Clean Australia Group, based in Queensland, has been selling vacuum cleaners under the brand Vacuos in NSW, Victoria and South Australia for more than a decadeThe CleanAustralia Group has also made a $250 million investment in the CleanAustralia retail businessThe group’s CEO, Peter McPherson, has told Fairfax Media that the deal could result the company losing up to 300 jobs as well as millions of dollars in revenueThe Clean-Australia Group, which operates in NSW and Victoria, said it would be “inappropriate to comment on any potential financial impact”.
It was not immediately clear whether the Clean Australia group would have to sell its vacuum cleaners.
However, a spokesman said the group was working to determine the full impact.
“Clean Australia is pleased to have the opportunity to partner with the Clean-Australasian Group to enhance our business in New South Wales and Victoria,” he said.
“We are hopeful that the partnership will result in significant synergies and the Clean Australasian group will benefit from a reduction in supply chain costs, as well.”
The deal was announced on Monday as Mr McPhearson toured New South Welsh and Victoria and spoke to a number of clean-air advocates.
“Vacuum cleaners are an integral part of our clean environment, and our country’s clean air is one of the most important assets that we have,” Mr McParthur said.
“I have been in the cleaning industry for a long time and I know how important it is to have a good clean air system.”
Mr McPhetarson said the deal was designed to increase the Clean Australian group’s footprint in New Zealand, but that he was “aware that there will be challenges”.
“We have a long-standing relationship with the New Zealand Government and the New York State Department of Environmental Conservation and we are looking to expand into other countries to get our business across,” he told ABC Radio New Zealand.
The company said it had been in talks with the Government of New Zealand about the partnership and that the company planned to announce further details in the coming weeks.
The Clean Australian Group is part of the Clean Alliance, which aims to reduce pollution and carbon emissions.
Mr McParthorn told the ABC that Clean Australia was looking to sell more than 40 per cent of its business in NSW to other cleaning companies.
“Our goal is to achieve 100 per cent clean air for New Zealand,” he added.
Mr MacPheson has previously said he is confident of the group’s future.
A spokesman for the Clean Australians group said the company would “work to identify and engage potential opportunities” for further investment.
Topics:consumer-protection,government-and-politics,environment,business-economics-and/or-finance,business/economics/business-news,federal—state-issues,new-zealand,labor,australiaContact Peter McParthyMore stories from New South Australia
