Homeware chain safe from Shanton receivership

JASON KRUPP AND JENNY KEOWN
Last updated 09:06 10/10/2012

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Linen and homeware chain Bed, Bath & Beyond will not be affected by the receivership of its ultimate owner Shanton Apparel, according to receiver Anthony Harris.

"Bed Bath & Beyond is not involved in, or affected by the Shanton receivership," Harris told Business Day via email this morning, ending speculation the 45 linen and homeware stores would be rolled into the action.

Harris was yesterday appointed receiver of clothing store chain Shanton Retail and its parent company Shanton Apparel, which also owns BBB Retail, the operator of Bed, Bath & Beyond.

The receivership followed what Harris called "a period of difficult trading conditions", and the intention is to sell it as a going concern.

Several parties are said to be interested in buying it.

The Shanton business, which employs 122 workers and operates 39 stores nationwide, continues to operate.

Staff have been offered re-employment by the receiver, and are expected to get all outstanding wages within a week and should also receive full holiday pay. Customer's gift vouchers, credits, refunds or layby would be honoured in full.

Company Office records show the south Auckland-based Shanton Retail suffered a loss of $353,496 for the year ended June 2011 on revenues of $24.2 million, a bigger loss than the $254,776 it bled the year before.

It had total borrowings of $3.4 million in 2011, compared to $3.6 million in 2010.

Parent company Shanton Apparel is majority owned by Australia-based Atamine. Atamine's director is Sydney rag-trade millionaire Fred Bart.

Carter Trading in Auckland, and Manukau-based Taca also hold stakes in the firm.

Bart resigned as a director of all three companies, Shanton Apparel and its two subsidiaries, BBB Retail and Shanton Retail, in October.

Shanton Apparel, which includes the financial performance of both Shanton Retail and BBB Retail, had total revenue of $48.7m and made a net profit of $2.3m for the June 2011 year.

BBB Retail's accounts for the year to June 2011 show the company had total assets of $10.3m but liabilities of $13.5m. BBB Retail's accounts show a $9.9m related party loan to Shanton Apparel.

Shanton Apparel's shareholder equity was also in the negative by $640,000, mainly due to a $10.4m related party loan to Shanton Properties (NZ) and accumulated losses. Shanton Properties is owned by Bart and Shanton Apparel director Murray Carter.

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- BusinessDay.co.nz

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