No buyers emerge for Wild Pair as receivers sell down inventory

Tuesday 26th January 2016

Failed retailer Wild Pair didn't attract any buyers and its receivers have closed most of the chain's stores as they look to sell the women's apparel and footwear company's stock to repay its lender.

The Auckland-based retailer struggled to compete in an increasingly cut-throat apparel and footwear sector, and directors Michael and Paul Donovan failed to find a buyer before requesting the appointment of receivers in November, according to McGrathNicol's Andrew Grenfell and William Black in their first report. Since their appointment, the receivers tried to sell the business as a going concern, but didn't receive any offers and are now winding down its $4.1 million inventory.

"Consequently, the receivers are trading the business to realise stock and have also disposed of a small number of fixed assets," the report said. "The receivers have also realised funds by assigning a number of leases held by the company to third parties."

The retailer is 51 percent owned by Michael Donovan and 49 percent by Paul Donovan, and was incorporated in 1987 under the name Payless Shoes. Michael Donovan also sits on the board of Hallenstein Glasson, and he and Paul Donovan also jointly own the Lippy NZ clothing business.

Since the receivers took control, they've shut 17 Wild Pair retail stores, and continue to operate six outlets in addition to the firm's online store. Lender ASB Bank's total exposure to the retailer is $2.3 million, plus interest, while staff are owed $342,000, Customs New Zealand about $63,000, and the Inland Revenue Department some $117,000.

As at Nov. 11, the day before the retailer's receivership, Wild Pair had book equity worth $1.8 million.

BusinessDesk.co.nz

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