Pricewise sold for $2.3 million, report shows

Pricewise was placed into receivership in August. Photo / Google Images

Documents relating to the previous owner of health and beauty retailer Pricewise show the company and its distribution arm changed hands for $2.3 million.

The retail chain sold for $1.45m while its distribution channel Zenith Distribution sold for more than $863,000.

Price Wise Limited, which once operated 16 Pricewise stores nationwide, was placed into receivership in August and liquidation on October 30, following the sale of company assets.

The retailer was sold to its former major shareholder and Smiths City owner Polar Capital - owned by Colin Neal in September - at the time the purchase price was undisclosed.

The business is now run by Pricewise CEO Craig Robertson.

Receivers were initially appointed after a dispute with shareholders over how the business was being run by founder Andrew Berryman.

During its time in receivership and when it was operated by receivers, the company received $96,151.60 in Covid-19 resurgence wage subsidy. It is understood some of this was paid back to the Ministry of Social Development following the sale of the business.

The receiver's first report shows the sale "encompassed all of the company's tangible and intangible assets with the exception of cash at bank and debtors".

As of August 21, the retailer had net cash balance of $491,702, stock worth $1,723,845, intercompany debtors worth $2.03m and liabilities worth $2.69m, including $131,425 in staff entitlements.

Following the sale, preferential creditors including staff, the Inland Revenue for GST and PAYE and Customs NZ received what they were owed.

It is not clear if charity Surf Life Saving New Zealand Incorporated, listed as an unsecured creditor of Zenith Distribution, received what it was owed following the sale.

The document does not specify how much money was owed to the charity, but this is understood to be through the sale of suncreams.

The Herald has contacted liquidator Brenton Hunt of Insolvency Matters and Surf Life Saving New Zealand for comment.

Pricewise and importer Zenith Distribution together turn over about $12m a year.