History set to repeat itself

By Deborah Hill Cone

Friday 4th October 2002

Companies owned by Eric Watson face two further court cases set down for the next couple of months; both have similarities to the Lancaster dispute.

Jowada Holdings, a company owned by economist Josephine Grierson has applied to the High Court for summary judgment against Cullen Investments and Pacific Retail Group.

In a story that seems to mirror the Lancaster case, Jowada claims to have approached Cullen with a proposal for a joint venture to take over listed company Bendon.

Jowada claims Cullen agreed to the deal but after buying shares in Bendon cut Jowada out.

Unlike the Lancaster proceedings however, Jowada got Cullen to sign a contract. It also allowed for Jowada to be paid a $900,000 introduction or success fee if the transaction went ahead without being a joint venture.

The High Court will grant the summary judgment only if Jowada, represented by Paul Dale, can show Cullen has no arguable defence. That case is set to be heard later this month.

And in another case against Pacific Retail Group, the former owner of gift chain Living & Giving, Bison Holdings, is suing PRG, seeking $1 million it claims it is owed under the acquisition contract. PRG is countersuing Bison and its shareholders Sally Bisley and Peter Jackson, claiming they guaranteed a level of profits from the stores which has not been met.

But relations in that case have not irretrievably broken down at the PRG annual meeting on Monday chief executive Peter Halkett publicly welcomed Ms Bisley and Mr Jackson and talked about the success the chain has been.

PRG chose not to keep on Ms Bisley who had been the buyer for the chain.

A retail source said the giftware chain depended on the eye of the buyer, and their ability to seek out "quirky" items that appealed to women shoppers.

The Bison case is set down for a half-day preliminary hearing in November.

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