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

 


Postie Plus sold as going concern to Sth Africa's Pepkor

Postie Plus sold as going concern to Sth African investment group

By Pattrick Smellie

July 18 (BusinessDesk) - Ailing clothing retailer Postie Plus has been sold for an undisclosed sum as a going concern to Roan Ltd, a subsidiary of Pepkor, a South African-based investment group with clothing and footwear retail interests in Australia and Eastern Europe.

News of the deal began to leak after staff received letters on Roan letterhead. Some 530 of the Auckland-based company's 560 staff have accepted positions with the new owner.

Postie Plus shares have been suspended from trading on the NZX since May 29, and last traded on May 27 at 7.3 cents, giving the company prior to the notification that it was going into voluntary administration a value of $2.9 million.

Despite a long trading history, Postie Plus ran into distribution chain and other difficulties when it outsourced warehousing operations to a third party when it shifted its headquarters to Auckland in 2012/13 and the company has been "vigorously pursuing" a damages claim.

"We believe this sale is in the best interests of all creditors and Postie Plus staff," said administrators David Bridgman and Colin McCloy of accounting firm PwC, in a statement. "Many of the Postie Plus suppliers will be able to continue trading with Postie Plus under its new ownership", which was first signalled in a statement on June 4.

In April, Postie Plus said it was in breach of its lending covenants and expected to remain so “for the foreseeable future,” meaning its bank funding was repayable on demand, though the arrangements it had in place with its bank were sufficient to meet the company’s forecast funding requirements up to July 30.

The voluntary administration had led to a "better outcome ... for creditors than would have occurred had the company been placed in receivership."

Pepkor's website shows the company has extensive interests throughout southern Africa and Nigeria, in Poland and Slovakia, and through three businesses in Australia, including the Harris Scarfe and the Best & Less brands. It has been trading since 1965.

Postie Plus has 64 retail stores located throughout New Zealand.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

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>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news