Friday 16th December 2011
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Kirkcaldie & Stains, the Wellington department store, has received a letter expressing interest in company’s retail assets out of the blue.
JC Capital, who is arranging the transaction, sent the retailer an unsolicited letter on behalf of an unnamed group of investors, Kirkcaldie’s said in a statement. The group is interested in the retail business, but not the property assets or the company as a whole.
“In absence of hearing from JC Capital the board will make contact to understand the nature of the interest and advise the market accordingly,” John Milford, Kirkcaldie’s managing director, said in a statement.
Kirkcaldie’s had not previously been approached by JC Capital.
The retail unit has been unprofitable for the past two years, and made a loss of $465,000 in the 12 months ended Aug. 31. The group posted a loss of $56,000 in the year as the property unit offset those losses.
As well as its flagship store on Lambton Quay, Kirkcaldie’s owns the Harbour City Centre, a historic six-floor retail and office building next door, which is currently being earthquake strengthened.
The shares last traded on Dec. 9 at $2.90, valuing the company at $29.7 million by market capitalisation.
John Chandler is JC Capital’s sole shareholder and director according to Companies Office documents, and his LinkedIn profile says he is “a specialist in structured and complex funding transactions, with significant experience across a wide range of jurisdictions and industry classes.”
He has previously headed up capital solutions at ANZ and had also held the role of director, leasing and structured asset finance.
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