Veritas sells Nosh for c$4 million
posted on 3rd February 2017
Veritas, which was ordered to sell Nosh or close the outlets by its bank, has sold the struggling chain for $3.98 million. The buyers are apparently a group of anonymous NZ investors going under the name of Gosh Holdings. According to the Companies Office, the newly-formed Gosh is 100 percent owned by Sydney-based New Zealander Andrew Phillips.
Nosh currently has two stores operating under franchise, although the Constellation Drive franchisee recently removed all Nosh signage. No comment has been made so far on the position of franchisees under the new owners. Although Mr Phillips says there will 'certainly' be more stores, it is not clear whether these will be franchised or company-owned.
Phillips, a New Zealand corporate finance specialist who has been based in Australia for 15 years, helped a consortium of New Zealand investors buy Nosh.
He would not identify the "two or three people" behind the purchase, but said they were involved with consumer products in New Zealand.
The group thought Nosh was a "great brand" and believed there was an opportunity to develop it and the chain.
Phillips, the new Nosh chairman, said his Australian base was also a hint as to what the future might hold for the business.
In New Zealand, there would be an internal restructure, but no change for customers with all stores open for business.
"We'll grow the brand there and then assess our options."
He said the company and its overhead costs needed to be looked at, but would not go into any possible job losses.
"We see this as a good opportunity.
"There will be more stores, certainly."
Phillips was confident it could turn Nosh around, and said private ownership would prove a better fit than being publicly listed.