Torpedo7’s new owners reveal major shake-up for retailer

Torpedo7's new owners have finally revealed their plans to turn around the business, and it includes a massive conversion. Photo / Dean Purcell

The new owners of Torpedo7 plan to close two stores and convert 10 of the 16 remaining stores to a new retail offering called The Outlet.

Tahua Partners bought the loss-making outdoor sports gear retailer last year from The Warehouse Group for $1 and until now have not revealed their plans for the retail group.

But in a statement to the Herald the business said it was announcing a major shift in its retail strategy, “marking the beginning of a new era focused on long-term growth and meeting the evolving needs of Kiwi shoppers”.

According to the group, Torpedo7 will continue to prioritise its online presence and its six flagship stores as the “ultimate destinations for outdoor enthusiasts”.

Those flagship stores include Albany, Newmarket, Taupō, Christchurch, Queenstown and the Remarkables.

However the group will be converting 10 existing Torpedo7 stores into a new off-price, value retail concept, The Outlet.

“With The Outlet, we’re bringing even more value to our customers, offering a fantastic range of products with unbeatable deals and prices – making brands, quality and everyday essentials more accessible to everyone,” the spokesperson said.

The stores set to be converted include Whangārei, Mt Wellington, Botany, Te Rapa, Tauranga, Napier, New Plymouth, Petone, Northlink and Dunedin.

The group will be permanently closing the Rotorua and Westgate stores.

From tomorrow the company will begin a closing down sale at the 12 affected stores listed above.

The group confirmed The Outlet’s focus will be on providing great value, everyday discounts, and a diverse mix of products, including apparel, footwear, outdoor gear, and other popular categories.

“We expect The Outlet to draw strong interest due to its unbeatable pricing and quality offering, and we’re confident it will resonate with shoppers looking for value,” the spokesperson said.

The group said the changes were part of a “forward-looking strategy to build a more resilient and sustainable business model”.

The company said The Outlet, combined with the remaining Torpedo7 stores, would strengthen the group’s online presence, ensuring a “seamless shopping experience” both in-store and digitally.

Loss-making business

Tahua Partners, the private group that owns the New Zealand arms of Burger King, Starbucks and Popeyes, purchased certain Torpedo7 business assets in March 2024.

In The Warehouse’s latest financial results the Torpedo7 business reported a $60.3 million loss from discontinued operations in the year to July 2024.

The business earned $94.5m in sales over the period but made an operating loss of $13.1m.

According to the report, Tahua Partners purchased plant and equipment, inventory, inventory prepayments, and the Torpedo7 brand.

It also assumed the obligations for honouring gift cards, customer orders not yet delivered and customer returns.

The report states that the group assumed obligations for “most store leases”, but not all.

At the time of purchase, Tahua Partners assumed responsibility for $3.8m in gift cards and online fulfilment obligations, with $24m in lease liabilities.

There were also $2.5m in redundancy and transaction costs associated with the change in ownership.

The report also revealed that the business had a book value as of January 2024 of $85.2m.

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.