The Mitre 10 hardware chain in New Zealand has confirmed it is not up for sale, despite the Australian arm of the hardware chain seeking a new majority shareholder.

The Australian Mitre 10 – which shares the owner/operator co-operative model seen in New Zealand – has been looking for a new cornerstone shareholder since September, with two bidders putting their hands up late last week.

On Friday, Australian grocery giant Metcash confirmed it had put in an offer of $A50 million for 50.1% of the business, with another bid submitted at the last minute by an unnamed private equity firm.

The company is seeking the cash to help pay off a $A55 million loan to the Commonwealth Bank with the possibility of insolvency if the bank did not supply a waiver on the company’s financial covenants in the June quarter.

There are currently more than 700 Mitre 10 stores in Australia, with more than 100 New Zealand locations, but there are few connections between the two businesses outside the shared name.

Mitre 10 NZ marketing general manager Peter Stewart told NBR the situation across the Tasman was completely separate from the local operation.

“Other than the odd conversation, there are no connections between the two businesses. We both have separate boards and owners, as well as our own goals and strategies.”

Mitre 10 was established in Australia in 1959, with the concept exported into New Zealand in 1974 when the first store opened in Auckland.