Yarrow brother to buy troubled bakery
Receivers for Yarrows the Bakers say they have entered into a conditional agreement to sell the Taranaki bakery operations to an entity owned by John Yarrow, brother of former owner Paul Yarrow.
The sale agreement includes the New Zealand operations at Manaia and the business and assets of Giles Bakery, based in Rotorua which is not in receivership.
If conditions are met the operations will come under the ownership and control of Yarrows (The Bakers) 2011 Limited (owned by John and Rosaleen Yarrow) from November 1 this year.
“The sale will help to secure the future of the businesses in both Manaia and Rotorua which is an excellent result for customers, suppliers, staff and local communities alike,” receivers Andrew Bethell and Brian Mayo-Smith said in a statement.
Yarrows the Bakers and two associated companies went into receivership in May when the company’s directors could not reach agreement on a restructure proposal that involved selling its Australian business.
At the time of receivership Yarrows The Bakers had total liabilities of $72.8 million, including $55.2 million owed to Westpac.
The receivers first report also noted that related companies Yarrows Traditional Foods and Southern Cross Investments owed a further $77.5 million through inter company advances.
With a further $13.8 million of accounts payable total debt across the group stood at $150.3 million.
NBR has reported that a charitable trust set up by the late Noel Yarrow is owed a significant sum from the Yarrows group.
John Yarrow is the brother of Paul Yarrow, who ran the operations until receivership.
The pair squared off in court in 2009 when Paul claimed he paid his brother too much for his share of the business – a $45 million payment in 2005. The case was settled out of court, with details suppressed.
Curiosity over the downfall of Yarrows has been heightened by court action taken by owner Paul Yarrow against a fellow director Michael Finnigan.