Renaissance sells Yoobee stores for one dollar
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Renaissance Corp [NZX: RNS] agreed to sell its Yoobee Apple computer stores, the last remaining business for the NZX-listed company after the sale of its design school.
Logical Systems Ltd, an Apple reseller and systems integrator based in Auckland, will take over five Yoobee stores, pay $900,000 for inventory less than 60 days old, sell older inventory worth about $250,000 on behalf of Renaissance and pay a nominal $1 for assets, fixtures and fittings, Renaissance said in a statement.
It will retain about 42 existing workers. Renaissance will be responsible for collecting debts of about $100,000. The sale is expected to be effective as of tomorrow.
Shareholders of Renaissance voted in January to sell the Yoobee School of Design to Academic Colleges Group for a net $13.3 million, with a potential earn-out of up to $1 million based on 2014 earnings.
The proceeds are being used to repay debt, leaving cash reserves of about $7 million, most of which is being held for return to investors on completion of the sale of the retailing business.
The company said last October that the retail stores weren't viable and that with the design school sold, it would need to seek further funds to keep the remaining business operating. Chairman Colin Giffney said at the time that 2013 had been "a terrible year."
Renaissance shares last traded at 14 cents, valuing the company at $6.1 million. They have shed a third of their value in the past 12 months.