Veritas files court proceedings over late Nosh payment
By Paul McBeth
June 16 (BusinessDesk) – Veritas Investments has kicked off legal proceedings against the buyer of the upmarket Nosh Group supermarkets for late payments.
The food and beverage investor says Gosh Holdings, since renamed itself Nosh Group, consistently failed to meet the payment schedule, breaching the sale and purchase agreement which was completed on Feb. 24, and missing $1.9 million of payments to creditors. Veritas is owed about $69,000 by Gosh Holdings.
"We entered into this transaction in good faith after a rigorous process and it is extremely disappointing that the directors of Gosh Holdings Limited (now Nosh Group Limited) have clearly failed and continue to fail to meet their financial and legal obligations," chairman Tim Cook said in a statement. "When Veritas originally purchased Nosh, Veritas committed to meet all creditors payments, which amounted to $3.9 million, and honoured this."
Veritas took on a $5 million funding line with ANZ Bank New Zealand to buy the Nosh stores in 2014 but struggled to turn the gourmet supermarkets into a profitable business, and was given a deadline by its lender to get rid of the business to keep in the bank's good graces.
The shares were unchanged at 25 cents, and have gained 25 percent so far this year.