Veritas future uncertain after bank pulls support

The future of the owner of the Mad Butcher franchise is unclear after the company’s bank withdrew its support.

Veritas Investments, the Nzx-listed owner of the Mad Butcher and Better Bar Company franchises, said ANZ would withdraw its banking facilities when they fell due in October and November.

This created ‘‘material uncertainty’’ for the company, which earlier this year sold the troubled gourmet supermarket brand Nosh.

As a result, Veritas was looking at the potential sale or merger of the business, raising capital, or refinancing.

The directors of the company were confident a solution could be found.

‘‘The directors acknowledge that if the group is unable to obtain alternative sources of funding, within the required timeframe to enable the repayment of the bank debt, or receive an extension of timing of debt repayments to the bank to enable the group to execute any of the above options, then the going concern assumption would not be appropriate.’’

Veritas reported on Tuesday a net loss of $800,000 for the year ended June 30, up from a $4.6 million loss last year.

Veritas said the Mad Butcher had been very competitive during the year.

Three franchised stores closed in Tauranga, South Auckland and Christchurch, and the future of three stores owned by the company was being considered.

The Better Bar Company exceeded forecasts and all the bars were profitable.

Earlier in the year, Veritas sold its Nosh business at a $2.6m loss.

Veritas launched court proceedings against the new owners, said to be a consortium of wealthy investors, months later over $1.9m in allegedly unpaid debt.

Veritas said judgment had been granted in its favour for just over $1.9m, but the company believed payment of this debt was unlikely. –Stuff