Dispute over Warehouse name

By NZPA

Tuesday 11th March 2003

A little known country retailer may have put a spanner in the works for The Warehouse Group's expansion in Australia.

The Warehouse plans to open its discount retail stores across Australia and re-brand most of its acquired stores here this financial year.

However, B&B Warehouse, a clothing retailer based in Wagga Wagga, New South Wales, has applied for "The Warehouse" trademark.

IP Australia, the government agency responsible for trademarks, approved B&B Warehouse's application last October. Less than a month later, The Warehouse Group filed its opposition to that decision and a response is expected from the agency later this year.

B&B Warehouse director John Bentley said he would pursue legal action against the New Zealand firm if his trademark was upheld. His firm has stores in five NSW regional centres.

The Warehouse Group chief executive Greg Muir told the Australian Financial Review (AFR) he did not believe the other firm's trademark would be upheld.

The Warehouse's Australian stores should account for about a third of the group's revenue within three years, he said.

The firm will rename its 115 Clint's Crazy Bargains and Silly Solly stores with The Warehouse name. They generate about a quarter of The Warehouse's total sales and account for more than half of its outlets.

Intellectual property lawyer John Lee told the AFR if The Warehouse Group's opposition to the trademark was unsuccessful then B&B Warehouse may be able to use its registration to prevent the New Zealand firm from using "The Warehouse" name in Australia.

The two companies have fought over "The Warehouse" name before. In the middle of last year an out-of-court settlement was struck based on terms which were kept confidential.

The Warehouse yesterday announced its January half year profit rose 7.2 percent to $63.5 million before a $7.5 million one-off charge lowered the bottom line to $58.2 million.

While the double digit growth of past years has evaporated, the result was in line with guidance and expectations.

The Warehouse Australia achieved a 19.4 percent increase in sales over the corresponding period last year, but operating earnings fell to $A4.5 million ($NZ4.94m) compared with $A6.5 million ($NZ7.13m) a year ago.

The Warehouse Australia plans to open up to ten large format stores before the end of July, bringing new store openings to 27.

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