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Whitcoulls sale close, Queen St store closes for stocktaking


Whitcoulls' flagship Queen Street store will close on Saturday for stocktaking as administrators of its troubled parent company prepare to offload the iconic bookseller chain.

Duncan Bridgeman
Tue, 17 May 2011

Whitcoulls’ flagship Queen Street store will close on Saturday for stocktaking as administrators of its troubled parent company prepare to offload the iconic bookseller chain.

NBR understands a deal to sell the New Zealand business is imminent with local buyers having been involved in the bidding process.

Whitcoulls was placed in administration in February when its Australian parent company, RedGroup Retail, collapsed under a mountain of debt.

Administrators Ferrier Hodgson would not take calls yesterday but a local spokeswoman said they were hoping to make an announcement relating to the sale later this week.

“I had to point out that there was a budget on Thursday so we’re trying to avoid that,” the spokeswoman said. “But we are hoping for something this week.”

A Whitcoulls staff member confirmed that Auckland’s Queen Street branch would be closed on Saturday for stocktaking.

There are 63 Whitcoulls and five Borders stores up for sale following the voluntary administration, which came a day after US giant Borders filed for bankruptcy in the US.

Ferrier Hodgson have already sold 10 Whitcoulls stores at airports throughout New Zealand to Australia-based travel specialist LS Travel Pacific for an undisclosed sum.

Eight Bennetts stores have also been sold to New Zealander Geoff Spong, the founder of university textbook retailer VOL. 1.

Private equity firm Pacific Equity Partners bought Whitcoulls from British bookseller W.H. Smith in 2004 for $135 million.

In 2006 the owners had talked about floating the company on the stock exchange while there was also speculation that PEP had been trying to tempt Sir Stephen Tindall into marrying Whitcoulls and The Warehouse stationery together and list the company.

This time around there are no obvious trade buyers, although names like PaperPlus, Dymocks and even Harvey Norman have been speculated on.

More likely, another private equity firm will enter the ring.

“I know they are very much hopeful it will be a New Zealand buyer,” the Ferrier’s spokeswoman said. “But that’s all I can say at this stage.”

Whitcoulls has had a string of high profile owners over the years including Sir Ron Brierley, Graeme Hart and Eric Watson.

Duncan Bridgeman
Tue, 17 May 2011
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Whitcoulls sale close, Queen St store closes for stocktaking
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