Liquor Stores NA (T.LIQ) responds to BC liquor changes, stock down 10%

Gaalen Engen Gaalen Engen, Stockhouse.com
0 Comments| February 3, 2014


Liquor Stores NA (TSX:LIQ, StockForum), a Edmonton-based liquor retail chain operating in Alberta, British Columbia and Kentucky, responded to a recent liquor policy review report released by the British Columbia Ministry of Justice that recommended, among other things, that liquor sales should be brought into British Columbia grocery stores.

 

According to the news release, BC government officials have announced their intention to adopt the report's recommendations, but Liquor Stores NA, which operates thirty-three retail liquor stores and three wine stores in British Columbia, was unable to confirm the timing of any regulatory amendments or how specifically the grocery store model is expected to operate.

 

Company president and CEO, Stephen Bebis, commented on the report, “"Given the current uncertainties surrounding the actual timing of any provincial legislation and the regulatory model that would eventually be used to phase-in liquor sales to B.C. grocery stores, it is difficult to quantify the potential impact that this may have on our B.C. stores at this time.”

 

Bebis went on, “We will continue to monitor these developments closely and evaluate appropriate measures to minimize the impact on our B.C. revenues and operating margins, while maintaining our focus on providing the best product selection, service and value proposition for our customers.”

 

Then added, “Also included within the Report are changes we believe will assist us in creating greater business efficiencies, including new rules permitting the warehousing of inventory and the ability to transfer inventory between stores.”

 

Liquor Stores NA was in the news recently when the company announced a January cash dividend.


Shares in T.LIQ dropped 9.3% on the news, falling to $13.
 

Currently there are 23.1m outstanding shares with a market cap of 331.4 million.



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