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Veritas gets extension on Nosh sale deadline as stoush with Constellation Drive franchisee brews

Monday 16th January 2017

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ANZ Bank New Zealand has agreed to extend the deadline for Veritas Investments to either sell or begin winding up its Nosh food supermarkets until the end of the month. 

In a statement to the NZX, Veritas said it had "received a number of approaches from potential purchasers of Nosh" and the board is in discussions with several parties about a potential sale of Nosh. 

The owner of the Nosh franchise on Constellation Drive in Auckland's Mairangi Bay has dropped the Nosh brand from its store. Veritas said the franchisee has indicated that he will operate independently of the Nosh franchise and "has purported to terminate its franchise agreement. Veritas does not accept that termination, and the parties are in dispute over the matter."

The food and beverage investor took on a $5 million funding line with ANZ to buy the Nosh stores in 2014 but has struggled to turn the gourmet supermarkets into a profitable business. Veritas renegotiated its banking arrangements in October to reduce its repayments and reschedule its debt, as its Mad Butcher and Nosh businesses weighed on the group.

In December, the company said it had until Jan. 15 to deliver either an unconditional contract for the sale of Nosh or a proposal to close and wind it down by the end of March. It now has until Jan. 31 to deliver a proposal to the bank.

The shares were unchanged at 20 cents, and have fallen 60 percent from a year earlier. 

 

BusinessDesk.co.nz

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