Mad Butcher owner faces problems after bank withdraws support
posted on 29th August 2017
29 August 2017 - The future of publicly-listed Veritas Investments, the owner of the Mad Butcher franchise, is unclear after the company's bank pulled its support for the company. Veritas is looking at a possible sale or merger of its business.
We've posted a couple of articles on private equity and listed company ownership of franchises recently. Read Dr Callum Floyd's discussion of the pros and cons of private equity and listed company ownership for franchisors and franchisees, while Simon Lord questions how well financiers understand franchising here.
Veritas Investments, the NZX-listed owner of the Mad Butcher and Better Bar Company franchises, said ANZ would withdraw its banking facilities when they fell due in October and November.
This created "material uncertainty" for the company, which earlier this year sold the troubled gourmet supermarket brand Nosh, and its ability to continue.
The directors of the company were confident a solution could be found.
"The directors acknowledge that if the group is unable to obtain alternative sources of funding, within the required timeframe to enable the repayment of the bank debt, or receive an extension of timing of debt repayments to the bank to enable the group to execute any of the above options, then the going concern assumption would not be appropriate."
"Whilst material uncertainties exist, the directors consider that there is a reasonable expectation that the above options can be executed and that the ANZ will support the group through this process."
Read more from the Stuff report.
There's also some interesting analysis and comments from the NBR and its readers.


Featured Listings
Blackwell Trading Post
Blackwell Trading Post offers a curated selection of premium gins. Best suited to a mature Kiwi operator with energy, enthusiasm, excellent people and...

Westpac New Zealand
Westpac is New Zealand's most experienced bank in franchising and the only bank offering dedicated franchise specialist managers throughout the country....

CrestClean
Looking for a simple business with low risk and high profit margins - where you can enjoy a great lifestyle? A CrestClean franchise ticks all the boxes!...

Franchise Accountants
Save time, money and tax by benefiting from our specialist franchise advice and proven accounting solutions. Your success is our business. Ring now 0800...

Choices Flooring
Be part of a new flooring retail opportunity in New Zealand where you will become part of an innovative and successful flooring brand. Choices Flooring...
