… building sold, but not the business

THE management of Laparkan and Fogarty’s called a press conference yesterday in the wake of an explosive report in the Stabroek News of November 27, 2013, alleging that the Fogarty’s store and building were sold to American Stores, the Trinidad and Tobago based furniture chain. The report quoted an unnamed source, purportedly at Laparkan, as well as sources within American Stores confirming the deal. However, Fogarty’s subsequently released a statement denying that they had sold the business.At yesterday’s press conference, which was called to set the record straight, Laparkan Chairman Mr. Glen Khan, who came from Miami specifically for the press conference, stated that he was very disturbed when he read the Stabroek News report as Fogarty’s is an iconic building, which is over 100 years old. He took the Stabroek reporters present to task, saying he was only a phone call away, and they could have called him to verify the story before publishing it.
He stated that they, in fact, sold the building that is currently housing Fogarty’s and other departments of Laparkan, but not the store itself, known as Fogarty’s. Mr. Khan explained that this is a process called financial engineering, which is well-known in the United States and other developed nations, but not in Guyana.
What they have basically done, according to Mr. Khan, is to sell the building with the purpose of leasing it back. The aim of the exercise was to release the cash presently tied up in the property. The Water Street building has been sold together with the Norton Street bond to the same buyer, who Mr. Khan described as a Guyanese group. The leasing arrangement is part of the deal to sell the building, according to the Laparkan boss.
Mr. Khan said the decision to rent the Norton Street bond to American Stores was made after they’ve already entered into the deal to sell the properties. Consequently, the new owners had to approve the arrangement to rent the Norton Street bond to American Stores. Khan said it is totally up to the new owners how long they will allow the furniture chain to rent the Norton Street facility.
As far as the day-to-day business of Fogarty’s downstairs division is concerned, not much is likely to change. However, some other departments on the other floors may be affected, as Laparkan will no longer own the building, and it is not clear who else will rent the building together with Fogarty’s. Mr. Khan stressed that there will be no layoffs and that they actually plan to hire even more workers. “However, we will have to wait and see how it all pans out once the new owners take charge of the building, which would likely be early in the New Year.
Mr. Khan further told the media that their freight businesses are sound and that they are expanding in a number of other areas such as money transfer. He mentioned Antigua which is a good market for them, because of the number of Dominicans who live there and send money back to the Dominican Republic.

(By Jimmy Roos)