Mad Butcher liquidations a 'coincidence of timing'
posted on 7th April 2015
Publicly-listed Veritas Investments, franchisor of the Mad Butcher chain, has said that the liquidation of four of its franchisee-owned outlets this year is a coincidence of timing rather that a sign of deeper problems. 3 of the stores have remained open under Veritas ownership, which also operates 2 other stores in the 40-strong chain.
The National Business Review, citing industry sources, has reported that more Mad Butcher stores are in financial difficulty, which chief executive Michael Morton last week called "grossly inaccurate".
In February, Veritas reported a 16 per cent decline in first-half profit to $1.7 million as acquisition costs mounted during a buying spree, and warned annual earnings may be at the low end of guidance depending on how its new businesses perform.
Revenue jumped 89 per cent to $27.4 million. Of that, the Mad Butcher business lifted revenue 14 percent to $16.6 million.
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