Auckland-based company Veritas Investments is playing it by ear, after its lender ANZ Bank New Zealand required it to provide an unconditional contract for the sale of Nosh by 15 January, or a proposal to close the chain.
According to a company statement, Veritas has decided to look at closing Nosh by 31 March 2017. In 2014, the company took on a $5 million funding line with ANZ to buy the Nosh stores, but the business hasn’t been profitable, making a loss of $1.9 million last year. Over the past few months, Veritas has been trying to franchise six locations.
The company’s chairman Tim Cook said that even though the sale or closure of Nosh will result in lower revenue for the group, from a long-term perspective it’s set to have a positive effect on overall earnings.
The investor had to renegotiate its banking arrangements in October, as two of its properties—Mad Butcher and Nosh—weighed on the group.