Veritas sells Nosh for $4m, looks to repay debt to ANZ

Thursday 2nd February 2017

Veritas Investments has sold its Nosh food supermarkets to Gosh Holding for $3.98 million, with the transaction due to be completed on Feb. 10.

The business and assets have been sold as a going concern and Gosh has agreed to assume Nosh’s trade creditor liabilities under the transaction, which includes about $1 million worth of stock, Veritas said. The net sale proceeds after post completion adjustments will be used to repay Veritas group’s bank debt to ANZ Bank New Zealand.

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, a deadline which was later extended to Jan. 31. Earlier this week, that deadline was extended until today to allow Veritas to conclude negotiations with its preferred bidder.

Gosh is owned by Sydney-based Andrew Guy Phillips, its sole director and shareholder, according to Companies Office records. It was incorporated this morning at 11:23 am.

Veritas shares rose 60 percent to 24 cents, though they have shed half their value in the past year.

BusinessDesk.co.nz

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