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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news