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


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news