Canterbury New Zealand Finds New Owner

Media Statement

August 4, 2009                                                                      

KPMG New Zealand

Canterbury New Zealand Finds New Owner

The world-wide future of sportswear maker Canterbury of New Zealand has been secured through a two-tiered arrangement brokered by KPMG’s Restructuring & Insolvency Services Director, Shaun Adams, together with his UK colleagues.

The arrangement involves British-based JD Sports Plc purchasing the world-wide brand with the agreement of Kuwait Finance House (Bahrain) [KFH], and then JD Sports licensing the Canterbury brand to the existing New Zealand and Australian operations.

JD Sports will operate the brand outside of Australasia.

“The arrangement will ensure that the iconic New Zealand brand will continue to have a significant world wide presence,” said Mr Adams.

“It will also see the New Zealand and Australian businesses continuing to trade, and the continuation of sponsorship commitments to high profile sports teams in this part of the world such as the Black Caps, Warriors, Wallabies, Queensland State of Origin and eight Air New Zealand Cup rugby teams.

“While only a part of Canterbury’s world-wide operation was placed in administration in Europe earlier this month, complex inter-relationships between various operations in different parts of the world made finding a buyer and structuring a successful deal a real challenge.

“This settlement has been achieved with the full co-operation of three parties – KFH, JD Sports and the local management of the Australasia trading entities.

“Between us we have been able to put in train a process that first saw the orderly transfer of the global brand to JD Sports, and then the Australasian operations entering into a long term deal with JD Sports to secure the future of the operations under the continued management of the existing operator.

“This co-operation sees Canterbury continue as a major international sportswear brand with a seamless transition to new ownership for the Australasian entities, their staff and sponsorship partners."

“It is an excellent outcome for all concerned.”

Australasian advisers who contributed to the two-tiered arrangement include KPMG in NZ, Australia and Europe, Simpson Grierson solicitors for KFH, Chapman Tripp for KPMG, Blake Dawson for KPMG Australia, Bell Gully for the Australasian entities and Loundes Jordan for JD Sports.

ends

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