Company News RETRENCHMENT BY WOOLBUYER

Press, Volume CI, Issue 29791, 6 April 1962, Page 15

Company News RETRENCHMENT BY WOOLBUYER

Prevost Closes Three Offices

(N.Z.P.A .-Reuter—Coppriff fit) MELBOURNE. April 5.

Prevost and Company, once recognised as one of the "Big Five” wool buying houses in •Australia, announced today that it is closing its offices in Melbourne, Sydney and London from June 30 this year.

An announcement by the Melbourne office said the decision was taken in view of the difficult conditions at present prevailing in the wool trade. The company will retain its present organisation in Western Australia and New Zealand, the announcement said.

At one time, the company was a big buyer for Iron Curtain countries and often headed the buying list in the main Merino sale room.

The Sydney “Sun,’ commenting on the announcement today, said other buying concerns also are believed to be on the verge of discontinuing operations. It said: “Financial stringency is being felt in many buying circles, especially in relation to banking conditions and a tightening of commission. “Buying on the property by speculators is diverting a big quantity of wool from auctions, although the practice is more prevalent in Western Australia. As far as Sydney and Goulburn centres are concerned, both brokers and buyers are perturbed at the increasing quantities of wool going from southern New South Wales to Melbourne.”