Mitre 10 stores in receivership as focus goes 'mega'

Three Wellington Mitre 10 branches are in receivership.

The Tory St, Kilbirnie and Crofton Downs stores are expected to continue trading and be sold as going concerns.

Staff contacted by The Dominion Post said yesterday they had been told by receivers BDO not to comment.

BDO also said it was unable to comment.

The three stores in receivership are smaller branches, rather than "mega" stores. Larger-format hardware stores have become popular with consumers because of their bigger ranges and cheaper prices.

Mitre 10 rival Bunnings Warehouse promises to beat competitors' prices by 15 per cent.

Mitre 10 chairman Martin Dippie said in the company's annual report that its mega stores had proven popular during the recession, and transactions in those stores had increased by 5 per cent on the previous year.

"The bulk purchasing and lower prices have made many DIY renovations projects less costly and more accessible to all socio-economic sectors."

The Mitre 10 mega store format was introduced in 2004, and there are 22 mega stores trading in New Zealand. The company plans to build a further 15 in the next two years, investing $150 million and creating 1000 new jobs, it has been reported.

Wellington has two mega stores, in Upper Hutt and Petone.

Mitre 10 stores are owner-operated. There are more than 100 throughout New Zealand.

Mitre 10 Group, which is 100 per cent New Zealand owned, reported a $1.66 million loss after tax for the year ending June 2009. A receiver was appointed on December 22.

Are you affected by the receivership of the Mitre 10 stores? Contact us on businessday@dompost.co.nz

- © Fairfax NZ News