Nido receiver approached 50-plus would-be buyers - but not Ikea
24 Feb, 2021 03:00 AM
5 minutes to read
A receiver of New Zealand s biggest homeware store has revealed how hard her firm tried to sell the business as a going concern, including approaching more than 50 would-be buyers. But in the end, attempts to sell the 100-showroom Nido came to nothing and yesterday it was announced that all stock in Henderson s store would be sold in the next two to three weeks and the shop shut.
Kare Johnstone of McGrathNicoll said her practice had approached more than 50 parties in a last-ditch attempt to sell the business, whose name is Italian for nest.
It was put into receivership after the liquidation of the construction company building the store, Vijay Holdings, in November. Both companies share the same sole director, Nido founder Vinod Kumar, who was also in charge of a related company which went into liquidation last week, Magsons Investments.
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Nido topped into receivership after the company building the store collapsed in November. Other factors contributing to Magsons Hardware’s failure included trading challenges and a lack of funds to cover losses and ongoing trading costs, the report said. The company had over $13.5m in assets and $22.3 million in liabilities. Other items on its books included $18.22m in intercompany loans and intercompany debt of $10.5m.
All three companies had a common sole director, Nido founder Vinod Kumar. Magsons Investments’ liquidators, Daran Nair and Heiko Draht of Greenlane Chartered Accountants, said the company owned was a part owner of Nido’s property at 158-160 Central Park Drive in Auckland.
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West Auckland furniture store Nido store continues to trade while receivers try to find a buyer. The company entered into a joint venture with Central Park Property Investment, and the venture was registered as Everest Central Investments Limited (ECIL). Initially Magsons Investments had a 20 per cent stake in ECIL but over time the other partner, Central Park, acquired some of Magsons shares. Company records show it no longer holds any.