Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
BUSINESSDESK: Renaissance Corp, which once had a monopoly on New Zealand sales of Apple products, will take legal action against Exeed over unresolved details of the sale of its IT distribution division.
In July, Renaissance shareholders voted to sell its IT distribution division to Exeed, halving the size of its balance sheet.
Exeed took over the supply of Apple, Fuji, Cygnet, Belkin and Ozaki, and acquired all the company's stock, valued at about $2.5 million, goodwill of $2.3 million and $570,000 for fixed assets.
Renaissance will take legal action against Exeed after it withheld $837,373.
The two companies are disputing $400,000 concerning the alleged breach of warranties by Renaissance, sick leave/long service leave, business records and fixed assets.
The funds have been placed in a solicitor's trust account until a resolution is reached.
"Since that time management on both sides have engaged with goodwill," Renaissance chairman Colin Giffney says. "On several occasions we were advised that management had agreed but on each occasion the agreement was refuted."
"Regrettably, Renaissance has today instructed its solicitors to commence legal proceedings against Exeed," he says.
Renaissance shares are unchanged at 12 cents and are up about 26% this year.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Warehouse CEO to depart as company fades
- MARKET CLOSE: NZ shares follow ASX lower, paced by Spark, Xero
- Invivo Wines beats equity crowdfunding records
- Dollar slips as traders look ahead to dairy auction, US payrolls data
- POLL RESULT: Should the govt put funds toward the next America's Cup if there's no Auckland qualifying series?