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

 

Warehouse buys SchoolTex from Postie Plus for $9 mln

Warehouse buys SchoolTex from Postie Plus for $9 mln, adding to uniform range

Jan. 15 (BusinessDesk) - Warehouse Group, New Zealand’s largest listed retailer, has agreed to buy SchoolTex from Postie Plus Group for $9 million, adding the nation’s biggest supplier of school uniforms to its department stores.

“We see the Schooltex uniform brand complementing The Warehouse’s existing school apparel and back to school product range,” chief executive Mark Powell said in a statement.

Postie Plus shares have shed 57 percent in the past 12 months and the clothing retailer posted a $13.2 million loss in its latest year after writing down the value of stock by $4 million. Sales and margins were also hurt after it outsourced its distribution centre, which got overwhelmed by the transfer of inventory arriving at the same time as new seasonal stock.

The deal will allow Postie Plus to reduce debt to $12.2 million from $21.1 million, giving the retailer more flexibility to invest in its clothing, health and beauty product ranges and complimentary products. It will also free up floor space for new products, it said.

The reduction in debt “is certainly more manageable and puts the business on a more sustainable business going forward,” Postie Plus CEO Richard Binns told BusinessDesk. He declined to give details of his company’s plans to use the freed up space in its stores.

Warehouse will pick up six Schooltex support office and regional staff at the end of February. Schooltex supplies uniforms and sportswear to more than 1,100 schools.

Postie Plus stock last traded at 10 cents. Warehouse last traded at $3.66 and has gained 19 percent in the past year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO:

Divesting: NZ Super Fund Shifts Passive Equities To Low-Carbon

The NZ$35 billion NZ Super Fund’s NZ$14 billion global passive equity portfolio, 40% of the overall Fund, is now low-carbon, the Guardians of New Zealand Superannuation announced today. More>>

ALSO:

Split Decision - Appeal Planned: EPA Allows Taranaki Bight Seabed Mine

The Decision-making Committee, appointed by the Board of the Environmental Protection Authority to decide a marine consent application by Trans-Tasman Resources Ltd, has granted consent, subject to conditions, for the company to mine iron sands off the South Taranaki Bight. More>>

ALSO: