$100k shortfall for Tauranga Mad Butcher
Tauranga store failure follows Silverdale's last month.
The franchisee of a Mad Butcher store in Tauranga has put itself into liquidation with an expected shortfall of $100,000.
It is the eighth of the Veritas-owned [NZX: VIL] butcher chain's franchisees to go into liquidation since March last year and the 12th since late 2012.
The Tauranga franchisee, Four K Investments, is owned by Wayne and Nita Kelsall, according to Companies Office records.
The failure was mainly due to increased competition after two supermarkets recently opened in the city, according to liquidator Tom Rodewald of Rodewald Consulting.
He says he is talking to potential buyers but the store will close today.
It is too early to say who the main creditors are but the shortfall is expected to be roughly $100,000, Mr Rodewald says.
Veritas chairman Tim Cook told NBR he hasn’t yet held discussions with the liquidator.
“They’re all individual small businesses in a very competitive supermarket environment,” he says.
Last month, the franchisee of the Mad Butcher store in Silverdale, Auckland, was put into liquidation on the application of Inland Revenue, owing $200,000.
Veritas, which also owns Nosh, has made a deal with ANZ to reduce debt repayments and reschedule its debt.
The listed company made a loss of $4.6 million for the year to June and is forecasting a revenue drop in 2017 but a profit of more than $3 million.
Thirty Mad Butcher stores are franchised, with two owned by Veritas.
Campbell Gibson
Thu, 27 Oct 2016
Thu, 27 Oct 2016
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$100k shortfall for Tauranga Mad Butcher
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