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HomeNEWSMad Butcher stores closing at the same time ‘simply a coincidence’

Mad Butcher stores closing at the same time ‘simply a coincidence’

Since the start of this year, the Rotorua, Massey, Glenfield and Kapiti Mad Butcher stores have all gone into liquidation.

The stores were owned by franchisees that run their own businesses independently, Veritas said in a statement.

All but the Rotorua store have been taken back into Verita’s ownership.

The food and beverage investor said changes in franchisee ownership aren’t unusual and it’s just a coincidence.

“The closures or changes are all unrelated and are primarily due to the personal circumstances or property lease issues of respective franchisees,” Veritas said.

The Rotorua store’s owner lost his business and home due to health and personal issues.

The store is being refurbished and taken over by a franchisee who has previously operated Mad Butcher stores.

The Massey store, which has faced ongoing lease continuity issues, will now be relocating to a new site. It’s expected to be up and running mid-year.

The Glenfield and Kapiti stores will be resold and will continue operating as normal.

There are 40 Mad Butcher stores nationwide, of which 35 are run by franchisees.

Veritas said that its franchisor business was tracking to target, as reported in the interim report in February.

The interim report stated a 16 percent decline in the company’s first half profits to $1.7 million, due to acquisition costs.

This included buying half of meat patty supplier Kiwi Pacific Foods in December 2013, buying gourmet supermarket chain Nosh in September and buying bar franchise Better Bar Co. in November.

 Veritas overall revenue climbed 89 percent to $27.4 million. The Mad Butcher business’s revenue grew to 14 percent to $16.6 million.

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