Allied Farmers has announced plans to sell its retail division in a bid to boost profitability.
The NZX listed company said it had entered into a conditional agreement to sell most of its stores to rural services company RD1.
The sale is expected to settle next week, with five store closures from a total of 11 stores.
The divestment of the rural merchandising stores will enable the Allied Group to
accelerate its debt retirement programme, the company said in a statement.
Allied Farmers rural chief executive Steve Morrison said: "we are delighted with
this outcome as it enables most of our stores to continue to operate for the benefit of the
local communities which they serve and of course retain staff within those communities".
- NZ HERALD ONLINE