Direct Factory Outlets
| File:Direct-factory-outlets-brand.png | |
| Location |  Various, Australia |
|---|---|
| Owner | Direct Factory Outlets Pty Ltd |
| No. of floors | 1-2 |
| Website | www.dfo.com.au |
Direct Factory Outlets, abbreviated as DFO, is the name for a no-frills group of discount shopping centres in Australia. They are large-floor warehouse buildings containing partitioned stores where retail outlets sell excess or previous seasons' stocks at reduced prices.
Contents
Business model
It model is to find cheap land, build a cheap but air-conditioned shopping mall.[1]
The Direct Factory Outlet retail chain is owned by the privately owned Austexx Group, led by David Goldberger and David Weiland with their first centre opened at Moorabbin Airport (Cheltenham) in 1997.[2] ACCC chief Graeme Samuel holds a $50 million interest in Austexx through a blind trust.[3] Valued at A$1.5 billion, in early 2010 the business was put up for sale with a number of retail investment funds expressing interest.[4]
DFO centres have traditionally been located around airports: a side effect of the Airports Act of 1996, the Commonwealth Government has planning control over the land, meaning state planning legislation can be bypassed by developers.[5] In addition the property developer is able to exploit the cost difference between retail and industrial rents, gives outlet centre operators a distinct advantage over traditional shopping centres. A survey by Melbourne newspaper The Age in 2007 found that in all three DFO-owned centres, most shops carried at least some full-price, current-season stock, available at normal shopping centres.[6] By 2008 five legal challenges to DFO developments have been made by competing retail developers and the Shopping Centre Council of Australia, all being unsuccessful.[5]
On 16 August 2010, lead bank Suncorp-Metway, along with St.George Bank, National Australia Bank and Lloyds Banking Group, issued a notice to parent company Austexx demanding repayment within 24 hours of the A$450 million they are owed.[7] The South Wharf centre was under a A$500 million debt, with work on completing the centre stopped after workers placed bans over non-payment. Parent company Austexx is understood to have total debts of A$1.2 billion, with the four relatively successful DFO sites used as cross-collateral for bank-funded expansion into five other less successful locations (Canberra, Cairns and Hobart). The group of banks appointed insolvency specialists KordaMentha as advisers, with the entire group facing receivership.[8] Negotiations continued until a deal was struck on Thursday 19 August, the four banks extending their funding to allow the South Wharf development to be completed. The ten DFO shopping complexes will then be sold off separately to repay the $1 billion owed to the banks.[3] The banks hope to recoup most or all of the money they are owed by avoiding a 'fire sale' of assets, but neither Austexx founders or other investors are expected to be repaid until the bank debts are settled.[3]
Locations
Direct Factory Outlets (DFO) locations are:
Australian Capital Territory
- DFO Canberra and Homemaker Hub – Fyshwick, 11 km east of Canberra
New South Wales
- DFO Homebush – Homebush, 14 km west of Sydney CBD
In 2009, a DFO in Wollongong, New South Wales near the Kembla Grange Racecourse was proposed, but was rejected by the Wollongong City Council.[9]
Queensland
- DFO Brisbane – Brisbane Airport, 8 km north-east of Brisbane CBD
- DFO Jindalee – Jindalee, 11 km south-west of Brisbane CBD
- DFO Cairns – Cairns
Tasmania
- (Proposed) DFO Hobart and Homemaker Hub – Hobart Airport, 17 km east of Hobart CBD[10][11]
Victoria
- DFO Moorabbin – Cheltenham, 20 km south-east of Melbourne
- DFO Essendon – Essendon, 11 km north of Melbourne - opened in Oct 2005[12]
- DFO South Wharf & Homemaker Hub – South Wharf, Melbourne CBD
Between 2005 and 2009 DFO Spencer Street operated as part of the Southern Cross Station complex. Tenants were relocated from 15 October 2009 to the new DFO at South Wharf, the Spencer Street centre being refitted and rebranded by Austexx as "Spencer Street fashion station".[13]
See also
References
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- ↑ How state axed $125 mil megastore for Kembla Grange
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