Farmers owners buy Whitcoulls and Borders

Friday 27th May 2011

The National Distribution Union has expressed "cautious optimism" at the news the owners of the Farmers department store chain have bought Whitcoulls and Borders bookstores in New Zealand.

Ferrier Hodgson, the administrator of Australian-based owner REDgroup Retail, yesterday announced the sale which had been the subject of speculation.

The buyer is Project Mark Ltd, a company in the James Pascoe Group. Anne and David Norman own the group that operates the brands Pascoes Jewellers, Farmers, Stewart Dawsons, Goldmark, Stevens, Prouds and Angus & Coote. The sale price remains confidential. It includes 57 Whitcoulls stores and five Borders stores.

"The sale guarantees the future of the majority of stores and has preserved more than 900 jobs," Ferrier Hodgson partner Steve Sherman said.

"The James Pascoe Group is known for reviving businesses and has a strong record of investment in their stores, stock and people."

NDU general secretary Robert Reid, who is also a member of the Whitcoulls creditors' committee, said the more than 900 workers at Whitcoulls and Borders would welcome the news that their jobs were now more secure.

"Yes it is very good that a New Zealand company has taken over the majority of the stores," Reid told Radio NZ.

About 25 jobs were affected at the three non-Christchurch stores the new owners would not be taking over.

The NDU had talked about that issue to the administrators who were to talk to new owners to see if those people could be transferred to nearby shops.

The Whitcoulls situation showed the parlous state of a chain after it had been taken over and its land and other assets sold off. The assets of Whitcoulls in this country were basically the books it held ready to sell, Reid said.

The new owners are not buying three quake-damaged stores in Christchurch, or three stores in Upper Hutt, Papamoa and Albany.

Further store closures are possible as leases have yet to be discussed with landlords.

The Dominion Post reported Mr Norman saying the new owners hoped to avoid any closures but it would depend on talks with landlords and others.

Should the worst happen, the new owners pledged to offer affected staff alternative employment.

James Pascoe Group is a successful business but it has a low profile because it is privately owned. The Normans rarely talk to the media and have been called quiet achievers in New Zealand business.

The New Zealand owned company has emerged as a force in retailing while other businesses faltered. Anne Norman is a granddaughter of James Pascoe.

NZPA

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