Woolworths Ltd
(ASX:WOW) and Hills Ltd
(ASX:HIL) have today agreed to end their business relationship.
Back in December 2014, they entered a contract which licensed certain Hills Home Living Brands to Woolworths for a 7-year period.
This comes after Woolworths announced its intention to leave the Home Improvement Business and the failure of its Masters chain.
The exact terms of the settlement are confidential, but Woolworths will bring forward 3 years’ worth of license fee income and cash receipts to Hills. This increase in income should reflect well on Hills’ first half results for FY2017.
Woolworths reported a net loss of $2.35 billion at 30 June 2016.
