Burger King NZ operators in receivership
WELLINGTON: The New Zealand operators of Burger King are putting the business up for sale, citing the ‘‘significant impact’’ of the Covid19 lockdown on the fastfood business.
Korda Mentha’s Brendon Gibson and Grant Graham were yesterday appointed receivers for Tango Finance, Tango New Zealand and Antares New Zealand Holdings, which are the franchise operators for Burger King in New Zealand.
The receivers say they want to sell the business and are planning to seek support from the companies’ suppliers and landlords. They said that the businesses’ financiers and master franchisor support this process.
Companies Office records show ANZ Bank has a general security agreement over the companies in receivership.
‘‘The ultimate aim of the receivership is to get the business restarted postlockdown and then transition the business to a new owner through a sale postlockdown,’’ Mr Gibson said in a statement.
Unite Union’s Mike Treen said members had heard a rumour last week but BusinessDesk’s call was the first he’d heard of the sale. He said there were 1500 Burger King workers in New Zealand, of which the union represented about 600.
He was optimistic a buyer would come forward — ‘‘burgers are wanted and will be wanted after the sale — fastfood sales in the 2008 crisis went up.’’
Antares Restaurant Group Ltd — a subsidiary that hasn’t been placed in receivership — claimed $11.5 million for 1918 employers, according to the Ministry of Social Development’s wage subsidy database, updated to April 8.
Tango Holdings NZ’s most recent financial statements for the 2018 calendar year reported steady revenue at $188.3 million from $187.3 million, but its loss was $72.3 million from a $3.1 million profit the year prior.
This was largely attributed to the $72.3 million impairment of goodwill. Auditor Deloitte said in the statements that the goodwill was allocated to operational arm Antares Restaurant Group, and was based on future cashflow predictions from a fiveyear plan.
While the group had a net working capital deficit of $19.2 million, up from a deficit of $8 million, the statements said its directors were satisfied it could be funded by operating cash flows and available borrowing facilities.
US private equity firm Blackstone paid $107 million for the Burger King operations in 2011, and according to The Australian Financial Review was looking to sell the business in March 2019.
Rival fastfood operator Restaurant Brands NZ, which operates KFC, Pizza Hut and Taco Bell, has told the market that the impact of lockdown closures on its New Zealand business will be ‘‘significant’’ but it remains well funded and will ride out any disruption.
The NZXlisted firm has received $21.81 million in wage subsidies from the Government, to cover 3651 workers, according to the MSD’s website, current as at April 8.
Finance Minister Grant Robertson touched on the Burger
King receivership in select committee questioning this week, saying he understood there was ‘‘a considerable amount of work going on on a creditor compromise’’.
‘‘That means that if that comes through it will see the operating arm continue to be able to trade.’’ — BusinessDesk