Crazy John's lives on in name alone

CRAZY John's managers vowed the company would live on after the shock death of its founder, John Ilhan, late last year. While they were right, those gaudy Crazy John's signs will now be the only link to the late mobile phone baron after his family yesterday sold its entire stake in the retailer to Vodafone.

By InvestSMART · 5 Sep 2008

By InvestSMART ·
5 Sep 2008

The deal to sell the family's 75% share of the company to Vodafone, likely to have been worth close to $200 million, ends a 17-year period in which the business grew from a single shop in Brunswick selling second-hand mobile phones to a chain of more than 100 stores.

When asked why the deal was done, Crazy John's managing director, Brendan Fleiter, was succinct: "The catalyst for it was John's passing."

John's widow, Patricia, said she was delighted with the deal with Vodafone, believing it could "take Crazy John's to the next level of growth and development". The stores will continue to be run independently.

Crazy John's partnership with Vodafone began only 14 months ago, after the mobile phone retailer's acrimonious split with Telstra as its exclusive telecommunications partner.

If Vodafone is successful, it could persuade the Smorgons, Crazy John's No.2 shareholder with 11.1%, to sell as well.