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

 


Postie Plus brand gets 2nd chance with well-funded Pepkor

Postie Plus brand gets second chance as well-funded Pepkor buys stores, sheds debt

By Suze Metherell

July 23 (BusinessDesk) - The Postie Plus brand is getting a new lease of life after South Africa's Pepkor bought the failed retailer's assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins.

Pepkor acquired Postie Plus's 64 stores, intellectual property, staff, head office and stock from the administrators for an undisclosed sum after the clothing retailer's lenders withdrew support in the face of ongoing losses. The shares had slumped to 7.3 cents, valuing Postie Plus at about $2.9 million, before being suspended from trading in early June, having debuted on the NZX in 2003 at $1 apiece. Debt stood at $12.1 million at the end of February.

Pepkor won't use the 'Plus' part of the name but will otherwise keep the brand unchanged, Jason Murray, managing director of Pepkor South East Asia told BusinessDesk. The South African company will use its scale to reduce stock costs and fatten margins, while ensuring Postie isn't starved of capital, he said.

"You can’t stabilise and then grow a business that doesn’t have capital," Murray said. Pepkor will ensure Postie has "the right stock, in the right store, on the right day. We’ll make sure there is plenty of capital for that and then the rest the business trades its way to keep being able to reinvest."

Postie is the first New Zealand investment for Pepkor, which has been trading since 1965, and joins over 3,000 clothing, textile and footwear outlets across Australia, Africa and Eastern Europe with more than $4 billion in annual sales. In Australia it owns the Harris Scarfe and the Best & Less discount clothing chains. It is entering a New Zealand market where clothing retailers are suffering from intense rivalry and inroads made by international online shops such as ASOS and Boohoo.

Murray said Pepkor's first step would be to assess where the retailer stood. "We’re not in this to spend a lot of money quickly," he said.

The failure of Postie Plus means its shares are probably worthless.

PwC administrator David Bridgeman said it was "unlikely" the 1,603 shareholders would get anything as remaining funds and assets will satisfy creditors' debt first. Substantial shareholders included Kathmandu founder Jan Cameron and Postie Plus's founding Dellaca family.

Administrators will hold a "watershed meeting" in the coming months to tie up the affairs of Retva Ltd, as Postie Plus Group is now known. Pepkor's Murray said he understands the Retva shell would soon de-list and expected administrators would eventually reveal the price paid for the assets.

During its voluntary administration, the PwC administrators closed 12 of the companies original 82 stores, leaving 70 remaining stores. During the Pepkor sale a further four were removed from the agreement, while one was a wholesale unit and two which had first been counted as separate stores were merged into one, leaving Pepkor with 64 stores.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Trade Agreements: TPP Minus US Starting To Gain Ground

The Japanese government is picking up the pace on reviving the Trans-Pacific Partnership trade and investment deal, with talks scheduled next month among the 11 countries left in the pact after the withdrawal by the US after the election of president Donald Trump. More>>

ALSO:

PACER:

Prices Up 2.2%: Annual Inflation Highest In Over Five Years

"Rising petrol prices along with the annual rise in cigarette and tobacco tax lifted inflation," prices senior manager Jason Attewell said. "Petrol prices in New Zealand are closely linked to global oil prices, and cigarettes and tobacco taxes rise in the March quarter each year". More>>

ALSO:

Undertaxed? NZ Income Tax Rate Second Lowest Among Developed Nations

New Zealand workers pay the second smallest portion of their income to the government among developed nations and less than half the average ratio of their Organisation for Economic Cooperation and Development peers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news