Aussies buy Nando's from receivers
The Australian operator of fast-food chain Nando's has taken over the management of the New Zealand franchises after buying the business from receivers.
Previous owner Shivram, directed and owned by Shailen Ramjee, ran into financial trouble last year and in November its banker, Heartland, appointed receivers William Black and Kare Johnstone, of McGrathNicol.
Johnstone and Black said today that Nando's Australia had exercised its rights to buy the business and assets of Shivram, which included the master franchise for New Zealand.
Johnstone said the business had carried on trading, and the 35 franchise restaurants were unaffected by the receivership.
A price for the sale was not disclosed, but the collapse of Shivram left significant creditors.
Black and Johnstone's first report, published in February, said Shivram had been in breach of banking covenants, and secured creditor Heartland Bank was owed more than $1.58 million.
Ramjee appointed liquidators Derek Ah Sam and Gary Whimp, of Rogers Reedy, to Shivram last month.
Liquidators reported that Shivram owed $1.48 million to unsecured trade creditors and $115,287 to Inland Revenue.
Founded in 1987 in South Africa, Nando's casual-dining restaurants have expanded to include more than 1000 restaurants in 24 countries.
- Fairfax Media