Allied Farmers to sell or close 14 retail stores
Allied Farmers has put its rural merchandise stores on the block.
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EARNINGS
Allied Farmers is putting its rural merchandising business on the block as the company seeks new ways to reduce debt, having already exhausted many of the easier assets it acquired from Hanover.
The company recently outsourced the management of the remaining Hanover loans to its former finance arm, now in the hands of receivers, and has undergone a management reshuffle with the early departure of former managing director Rob Alloway.
Allied Farmers said today its rural retail stores were not performing and a decision had been made to divest them either by closure or sale.
“The divestment of the merchandise business will enable the group to accelerate its debt retirement programme,” Allied said in a statement to the NZX.
As at June 30, 2011 Allied Farmers had reduced total group debt by $50 million, the company said.
At the same time last year total debt was $112 million (less of debt owed to Allied Nationwide in receivership).
Allied Farmers Rural chief executive Steve Morrison said divesting the rural stores would enable the company to focus on its profitable livestock business.
Allied Farmers shares were up 0.1c to 0.9c at 3pm today.
Duncan Bridgeman
Tue, 05 Jul 2011
Tue, 05 Jul 2011
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Allied Farmers to sell or close 14 retail stores
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