Big Chill founder buys Smiths City
Days after announcing imminent redundancies and store closures, homeware retailer Smiths City has been sold to Polar Capital, which is owned by Colin Neal, the founder of the refrigerated logistics company Big Chill.
The sale includes all of Smiths City Finance and most of the Smiths City stores.
About seven of the listed company’s 29 stores were not included in the sale and will close.
In an announcement to the New Zealand stock exchange, the company said jobs could be offered to about 75 per cent of Smiths City’s 465 staff members.
The sale has been valued at $60 million.
However, once debt and other liabilities were taken into account, the net amount expected to be received is $8m, according to the announcement.
The sale is conditional on, among other things, Polar Capital securing finance.
Smiths City shares were placed in a trading halt for the second time in two months on Friday.
Smiths City chairman Alastair Kerr said the coronavirus pandemic had delivered a material and significant shock to the business.
‘‘This shock has substantially shortened the time available for the turnaround programme that was the cornerstone of the company’s strategic plan.
‘‘Faced with this shorter time frame, it became clear that Smiths City needed to bring new capital into the business to drive the turnaround.’’
Polar Capital’s Colin Neal said all Smiths City’s commitments to customers would be honoured.
While the pandemic has been blamed for Smiths City’s difficulties, the retailer has been struggling for a number of years.