Veritas Investments has sold its Nosh food supermarkets to Gosh Holding for $3.98 million, with the transaction finalising on February 10.
The business and included 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 one million dollars’ worth of stock.
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 took out 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.
In December, the company said it had until January 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.
Veritas shares rose 60 percent to 24 cents, though they have shed half their value in the past year.
The sale proceeds will be used to repay Veritas group’s bank debt to ANZ Bank New Zealand.
The owner of the Nosh franchise on Constellation Drive in Auckland's Mairangi Bay has dropped the Nosh brand. It is still uncertain what is happening with the store who is trying to end their franchise agreement.