(23 September 2024 – Australia) BoQ is gripped in a hostile show down with antagonistic branch owner-managers over its new strategy to re-acquire the franchised network.
The bank plans to acquire their branches for what they allege is a below market price, ceasing a unique franchise model that underpinned the bank’s strategy for over two decades Lucas Baird reports for the AFR.
BoQ has provisioned A$125 million to take over 114 franchised branches by the end of Q1 2025 however owner-managers are questioning if the initial buyout offers reflect the true value of their business.
As recently as Q2 2024, the bank advised investors that it planned to expand the owner-manager network to 90 percent of its footprint by 2026 before the sudden about face. The bank is also grappling two enforceable undertakings from AUSTRAC and APRA over risk and compliance failures.
“With higher costs and falling margins the current operating model and structure is not sustainable” stated BoQ CEO Patrick Allaway.
“BoQ franchisees are not happy. The bank announced last month that it would acquire 114 branches for up to A$125 million from their owner-managers, but the sudden about face in strategy and the takeover offers BoQ have put on the table has angered the network. BDO is sniffing around and flyers are out to try get a group together with talk of legal action” commented AFR Journalist Lucas Baird.