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HomeNEWSNosh has more time to wait for a buyer

Nosh has more time to wait for a buyer

Owner Veritas has indicated Nosh is continuing to lose money overall, with the sale or disposal of the business likely to be positive for its earnings.

Out of the six Nosh stores listed on Trade Me in November, with asking prices between $400,000 and $1.2m, none have sold.

Veritas was initially required under the revised facility to deliver by January 15th either an unconditional contract for the sale of Nosh or a proposal to close and wind down the chain.

However, chairman Tim Cook stated that the company has a ‘strong relationship’ with its banker and had made the deal to reschedule and reduce the group’s debt repayments and extend its deadline for sale.

Although Veritas stated to The Herald that he had, “a number of buyers interested in the chain”, no sales have yet been concluded.

There is an issue with one of the stores, though.

“The franchisee of the Nosh Constellation Drive store has indicated its intention to operate independently of the Nosh brand, and has purported to terminate its franchise agreement,” Cook said.

“Veritas does not accept that termination, and the parties are in dispute over the matter.”

The entire Veritas business is valued at only $8.7 million, as a result of its shares losing more than 90 per cent of their value since optimism about the firm peaked in 2013.

Wellington retail analyst Chris Wilkinson said in October to The Herald that the specialty food sector had almost become a victim of its popularity.

“As large retail chains cash in with artisan local suppliers, they end up catering for niche tastes, it has increasingly challenged the specialty retailers.”

Veritas originally listed shares of $1.30 have now dropped to $0.20.

If the business fails to met its criteria to sell by January 30th, it must close all its stores by the end of March. 

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