Nando's master franchise 'close to sale'
posted on 14th February 2014
14 February 2014 - The company which owns the master franchise for the Nando's chicken chain, which was placed in receivership in November 2013, is close to being sold according to a report in today's New Zealand Herald. Although the report does not name the likely purchasers, Franchise New Zealand understands that several parties expressed an interest, including some which already have food franchise experience. Individual Nando's stores, which are owned by franchisees, are not in receivership and have continued to operate as normal during the last three months.
Meanwhile, Nando's Australia has tried to grab some publicity from the release of convicted drug smuggler Schapelle Corby's release on parole with a Facebook message encouraging her to eat at Nando's and promising, 'The only bars you'll see are on our grill.' It's been controversial...
Receiver Kare Johnstone, of McGrathNicol, said that in the lead up to the receivership Shivram had defaulted on royalty payments due to the master franchisor for the region - Nando's Australia - and had been issued with a breach notice under its franchise agreement.
The company owed $1.6 million to Heartland Bank at the time of the receivers' appointment and interest was continuing to accrue on that amount, she said.
Nando's stores in New Zealand, which are independently owned, are not in receivership and continuing to operate as normal.
In December Shivram's sole director, Shailen Ramjee, said he and Heartland had agreed on the receivership, which would "protect the assets so that everyone can be paid" and avoid the franchise agreement being terminated by Nando's Australia.
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