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Bank gives Nosh another extension to sell or close

Nosh Supermarket in Ponsonby, Auckland. Photo / File
Nosh Supermarket in Ponsonby, Auckland. Photo / File

NZX listed company Veritas has been granted another extension to sell their unprofitable upmarket grocery chain Nosh.

The company was at deadline today on an extension when it announced a further reprieve on the NZX

"ANZ has agreed to extend the date for Veritas' delivery of a proposal for Nosh to 4pm on 2 February to allow conclusion of negotiations with the preferred bidder for Nosh," Veritas said in the release.

The Herald reported in November that Nosh franchises had gone up for sale, though it's unknown if a buyer was found for any of the sites.

Veritas originally agreed with ANZ to unconditionally sell Nosh with an original deadline of January 15 or wind the business up.

ANZ agreed to extend the deadline to the end of the month after which Veritas said in a statement to the NZX that they had "received a number of approaches from potential purchasers of Nosh" and that the board was "in discussions with several parties in relation to a potential sale of Nosh."

Veritas chairman Tim Cook refused to comment.

The real estate agent who is selling franchises, Peter Nola, also said he could not comment on whether a new owner had been found.

The owner of the Nosh franchise on Constellation Drive in Auckland's Mairangi Bay has dropped the Nosh brand from its store.

Veritas said the franchisee has indicated that he will operate independently of the Nosh franchise and "has purported to terminate its franchise agreement. Veritas does not accept that termination, and the parties are in dispute over the matter."

Veritas took on 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. It had set out plans to franchise the business in recent months.

Vertias shares traded today for 15 cents, down from 30 cents this time last year.

- With BusinessDesk

- NZ Herald

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