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Kirkcaldie buyer yet to make firm offer

Tuesday 7th February 2012

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Kircaldie & Stains chairman Falcon Clouston met with a potential buyer for the company’s ailing retail business, but didn’t receive a firm offer.

Clouston met with a representative of J C Capital, which is arranging the transaction, last week after receiving a letter of interest in buying the retail business in December, the company said in a statement. Any future deal has been left in the hands of the interested parties.

“The company understands that the expressed interest remains, but no timetable or framework was set for further discussions, and the company is leaving the initiative with J C Capital,” the company said. “The company is continuing its evaluation of options with respect to its property and retail businesses.”

The retail unit, which operates the upscale department store on Wellington's Lambton Quay, 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, Kirkcaldie 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 at $3, valuing the company at $30.8 million.

(BusinessDesk)

BusinessDesk.co.nz

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