Stockbroker Brett Wilkinson is baling out former retail services group RetailX with $30,000 of his own cash.
Wilkinson, an investment adviser at discount broker Direct Broking, is buying 600,000 shares at 5c apiece. This will give him more than 16 per cent of RetailX, which got into trouble after itlost the contracts to manage the Stirling Sports and Building Depot chains.
Wilkinson says he does not have any plans for RetailX, now a shell, but he sees potential for it to be used as a vehicle to list another entity in the future.
He said: "The company will use the cash to keep itself listed and go some way to looking after creditors."
RetailX shares were yesterday unchanged at 6c a share. They plunged from a high of 30c last year amid troubles with its main contracts.
First the Building Depot went into receivership, leaving debts of up to $8.7 million. Then the contract to manage the Stirling Sports chain was terminated.
RetailX, which was almost $900,000 in the red in the six months to September, was one of the first companies to list on the small companies NZAX market.
It said last year that several entities had expressed an interest in buying the company as a backdoor listing in the stock exchange's AX market.
Yesterday it gave no further details. "It is expected that in due course further announcements will be made about significant transactions involving RetailX. Shareholder approval of these transactions will be sought ... "
