Nosh has managed to reach a settlement with the last remaining franchise owner who tried to terminate his franchise when the business sold.
The former owner of Nosh, Veritas Investments, said it had settled the dispute with Phil Mead who was unhappy about agreeing to buy the business just days before Veritas disclosed it was facing problems with the bank.
On Febraury 24, Auckland-based Veritas completed the sale of its Nosh Group Ltd franchisor operation for about $4 million to Gosh Holding, whose Sydney-based owner Andrew Phillips, renamed it the same day as Nosh Group.
Constellation Drive Nosh. Photo Credit: Rosedale Community Council Facebook
Mead’s Nosh located on Constellation Drive had served a notice to terminate its franchise which was disputed by the company.
"Under the terms of the settlement, Constellation Drive Food Market has agreed to pay an undisclosed sum to Old NGL Limited to settle all debt, claims and disputes concerning that franchise," Veritas said in a statement to the NZX.
In February, Veritas said it would book a loss of between $2.2m and $2.6m on the sale in its annual accounts.
The $3.98m sale included about $1m of stock. Veritas valued Nosh's assets at $7m with $2.6m of liabilities at the December 31 balance date.
Veritas made an after-tax profit for the six months to December 31 of $1.2million, a $6 million improvement on its loss last half-year.
The company's shares have more than doubled to 31c a share in the past month.