1924 September

The founders of Woolworths incorporated the company with a Nominal Capital of 25,000 shares of £1 ($2) each. The original prospectus showed the proposed company as ‘Wallworths Bazaar Ltd’ an obvious play on the famous F. W. Woolworths, name. However when it was discovered that F.W. Woolworths hadn't registered the name in Australia and had no plans to open in Australia, the name was changed to Woolworths. On 22 September 1924, the Company was registered as ‘Woolworths Limited’.

Although 15,000 shares were offered to the public, there was little confidence in the venture. Only 11,707 shares were subscribed for by 29 people, mostly friends and business colleagues of the promoters, including the proprietors of the Adelaide Cash and Carry store. The Woolworths Bargain Basement store traded through December and January quite successfully but the initial capital subscribed proved to be insufficient. However a meeting of the shareholders brought more capital and from then on steady progress was made. In its first year, the Company paid a dividend of 5%, in the second year 40% and in the third 50%.The founders’ policy of selling goods in popular demand on a cash and carry basis had been vindicated.

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