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Woolies cuts ties with Masters board

AAP logoAAP 5/09/2016 Petrina Berry

Woolworths has pressed on with cutting ties with Masters by replacing its directors on the failed hardware chain's board with staff from insolvency firm KordaMentha.

Woolworths' board members of Hydrox, the joint venture company it set up with US firm Lowe's to run Masters, have stepped down and have been replaced with KordaMentha founder and partner Mark Korda and his team.

The Australian retailer' chief legal officer and company secretary, Richard Dammery, says KordaMentha have been advising the group on the Masters exit since March.

"Mark and his team are experienced directors in complex restructuring and closure situations," he said in a statement on Monday.

"They were appointed to the Hydrox Board to replace me and the other Woolworths- appointed directors in order to allow us to focus on our day to day responsibilities."

Woolworths is in the middle of a legal dispute with Lowe's, a large US hardware retailer.

Lowe's has accused Woolworths of being oppressive and of trying to terminate the joint venture agreement in bad faith.

It wants the Federal Court to appoint an independent liquidator.

However, Woolworths has argued that Lowe's has no economic interest in Masters after exercising its option to sell its 33 per cent stake to Woolworths in January.

The case is due back in court on September 15.

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