26 Feb 2016

Sir Ron Brierley bids for remnants of Kirks

2:53 pm on 26 February 2016

Veteran corporate raider Sir Ron Brierley is making a bid to buy the remnants of Wellington retailer Kirkcaldie & Staines.

no caption

The company's iconic store on Lambton Quay is being turned into the first New Zealand outlet for Australian chain David Jones. Photo: Wikicommons

The company that operated Wellington's former "posh shop", which closed its doors last month after more than 150 years, is wrapping up its closure and paying out $19.4 million to shareholders, who will retain a greatly reduced stake in the rump.

Sir Ron Brierley

Sir Ron Brierley Photo: Coats Group

Earlier this week, the Kirkcaldie's board said the company might have another $6.5 to $7.5m in cash once its remaining assets and leases were disposed of, which might be worth as much as $3.67 a share.

The directors said the residual company might be attractive for businesses wanting an easy back-door listing on the stock exchange.

But a Brierley-controlled vehicle, Mercantile Ltd, is offering to buy out whatever is left of Kirkcaldies for $2.75 a share.

Mercantile already owns just under 10 percent of Kirkcaldies, but has given no indication of what it would do with the company.

Meanwhile, work to transform the Lambton Quay shop into the first New Zealand outlet for Australia's David Jones chain is well underway.