VIL
07/04/2015 11:01
GENERAL
PRICE SENSITIVE
REL: 1101 HRS Veritas Investments Limited
GENERAL: VIL: Veritas responds to media comments on Mad Butcher
NZX statement
7 April 2015
Veritas responds to media comments on Mad Butcher
The Veritas Board are responding to recent media articles regarding Mad
Butcher franchisee stores.
The VIL interim report issued on 26 February 2015 highlights the fact the
franchisor business is tracking to targets. There have been no material
changes to the operation of the franchisor business since the issue of the
interim report.
The facts
The Mad Butcher operation comprises 40 stores, 35 owned by franchisees with
five currently owned by VIL. The franchisees are independent operators
running their own businesses under the Mad Butcher banner.
Of the franchisee-owned businesses, four have been placed in liquidation
since January 1, 2015. The closures or changes are all unrelated and are
primarily due to the personal circumstances or property lease issues of
respective franchisees.
Franchisee changes are not unusual and these recent changes are simply a
coincidence of timing.
In Rotorua, the owner of the Mad Butcher franchise suffered major health and
subsequent personal and family issues. These have left him without his
business and his home.
VIL has taken immediate steps to ensure the inconvenience to Rotorua shoppers
is minimised. The store is being refurbished and an experienced franchisee
who has previously operated successful Mad Butcher stores, will be the new
owner operator.
The Mad Butcher store in Massey was the subject of on-going property issues
around lease continuity. The situation is being resolved by bringing the
store back in to the VIL fold and relocating to a new site. The new premises
are expected to be up and running mid-year depending on final site selection.
The Glenfield and Kapiti Mad Butcher stores also have been brought back in to
ownership by VIL and will be re-sold as is normal operating practice.
The recently opened Nelson store is trading as expected for a new franchise
operation.
In addition, a new Mad Butcher store is to be opened in Dunedin by the
existing franchisee, its second in the city.
Mad Butcher provides strong operational support to individual franchisees,
and will continue to do so as part of its partnership with those business
owners.
For the record, VIL currently owns the Invercargill, Glenfield, Kapiti,
Henderson and Massey stores. As stated in the company's half year update,
ownership of stores as a transitional arrangement is a normal part of
franchisor activity.
About Veritas Investments Limited
Veritas Investments is a NZX Main Board-listed investment company focusing on
the Food and Beverage sector. The shell company was formed in December 2011
and made its first acquisition of the Mad Butcher franchisor business in May
2013 through a reverse acquisition transaction. A further investment was
made in December 2013 for 50 per cent of Kiwi Pacific Foods Limited. In
September 2014 Veritas acquired the Nosh Food Market business. In November
2014 Veritas acquired The Better Bar Company group business.
www.veritasinvestments.co.nz
Contact:
Mark Darrow
Chairman
Veritas Investments Limited
Mob 021 88 88 58
Michael Morton
CEO
Mad Butcher Limited
Mob 021 725 458
End CA:00262788 For:VIL Type:GENERAL Time:2015-04-07 11:01:40
