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Renaissance sells Yoobee stores for one dollar

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.


Comments and questions

It's such a poisoned chalice, but will someone back into the shell....?

Look on the bright side, they finally worked out how to give a good discount.

A couple of points:
* Retail was not the "last remaining business for the NZX-listed company after the sale of its design school". There are also the online/EDI/hosting businesses which are still trading.
Therefore cash reserves cannot be returned to investors "on completion of the sale of the retailing business".
Bit of basic fact checking here wouldn't go amiss.

* If retail hadn't been sold - it would have been wound up resulting in the loss of all jobs. By selling - these jobs have been saved.

If the stores had been closed there would have been inventory to deal with and redundancy payments. Checkyourfacts, an obvious employee of renaissance, don't try and make this out as if it was a moral decision.

@Bob down.
Wasn't implying that is was a moral decision. It was a simple statement of fact. Selling the business was the best outcome for all.

If the stores had been closed, granted there would have been inventory to deal with - however in a staged wind-down there would have been a single store left running to clear this out.
Also ... "redundancy payments"? Seriously? How many contracts contain redundancy clauses these days? (especially in retail). Once again, a staged wind down would have seen staff given notice & work it out. No extra payments.

Last time I checked Renaissance didn't employ lawyers ... so no, I am not now, nor have I ever been, an employee of Renaissance.

I believe there was also an issue with mall leases preventing Yoobee from closing more stores?

Who is actually using their EDI or Hosting business? I'd heard all their customers lept off their system a couple of years back when all their dev staff left. Nothing left I suspect.