Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Rebranding & Closure Of DEKA Stores

Farmers Announces Rebranding And Closure Of DEKA Stores

Farmers Deka Limited Chief Executive, Nick Lowe today announced the closure of the Deka business.

Mr Lowe’s announcement followed the release of a statement to the Australian Stock Exchange by parent company, Foodland Associated Limited (FAL) that said:

“A strategic review of the long term viability of Deka has been prompted by both trading losses for the half of NZ$3.3 million and the prospect of a continuing deterioration in the performance of that business. The Group has decided to accelerate the exit from the Deka brand and has fully provided for this outcome by creating provisions of A$20.7 million…”

The Deka brand will cease to exist and the company intends to rebrand 17 stores as Farmers. The remaining 43 stores and Auckland-based distribution centre will close in due course. The rebranding process will begin shortly and should be complete by 31 July. The majority of store closures will also occur in July. Mr Lowe expressed his regret at the job losses.

“This decision has not been made lightly and we are acutely aware of the impact this will have on our team members. However, our attempts to turn Deka into a profitable business have been unsuccessful and we are no longer prepared to sustain continued trading losses,” he said.

As a result of the Deka closure, 468 full time and 947 part time employees will eventually be made redundant. However, between newly created roles in the 17 rebranded stores and other positions currently available within Farmers, the company has almost 400 vacancies to be filled.

“Our overriding concern during this time is for the well being of our team members. We are doing all we can to mitigate the impact of the closure including actively recruiting Deka personnel for vacancies within Farmers and our sister company, Progressive Enterprises. We are also offering financial planning assistance and counselling, “ Mr Lowe said.

Mr Lowe also detailed expansion plans for the Farmers brand.

“Our intention is to aggressively expand Farmers’ operations. By July 2003, our retail square footage will increase by at least 30 per cent. This significant growth will be achieved through the opening of four new stores, the enlargement or relocation of three stores and the planned rebranding of the 17 Deka stores.

“Initiatives such as these will see more than 1000 new jobs created within the next three years,” Mr Lowe said.


[ends]


* Store lists attached
Appendix 1


DEKA STORE CLOSURES

NORTHLAND (3)
Dargaville, Kaikohe, Whangarei

AUCKLAND (8)
Downtown (Queen St), Karangahape Rd, Manukau, Onehunga, Otahuhu, Pakuranga, Papakura, Pukekohe

WAIKATO (6)
Hamilton, Huntly, Morrinsville, Taupo, Te Awamutu, Te Kuiti

TARANAKI (3)
Hawera, New Plymouth, Stratford

KING COUNTRY-WANGANUI (2)
Taumaranui, Wanganui

BAY OF PLENTY (1)
Tauranga

HAWKES BAY (3)
Napier, Waipukurau, Wairoa

WAIRARAPA - WELLINGTION (7)
Coastlands (Paraparaumu), Cuba St (Wellington), Fielding, Lambton Quay (Wellington),
Lower Hutt, Masterton, Wainuiomata

MARLBOROUGH (2)
Blenheim, Richmond

CANTERBURY (3)
Bush Inn, Eastgate, New Brighton

OTAGO (3)
Balclutha, Dunedin, Oamaru

SOUTHLAND (2)
Gore, Invercargill

Appendix 2


DEKA STORES TO BE REBRANDED AS FARMERS

AUCKLAND (3)
New Lynn, Westgate, Whangaparoa

WAIKATO (3)
Chartwell (Hamilton), Matamata, Tokoroa

BAY OF PLENTY (2)
Rotorua, Whakatane

GISBORNE (1)
Gisborne

MANAWATU (1)
Palmerston North

HAWKES BAY (1)
Hastings

WELLINGTON (1)
Kilbirnie

NELSON (1)
Nelson

WEST COAST (1)
Greymouth

CANTERBURY (3)
Hornby, Riccarton, Timaru


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news