New Zealand apparel retailer Postie Plus Group Limited will host a special meeting next month to seek the approval of shareholders over the sale of its childrenswear brand, Babycity.
The company, which also operates national retail chain Postie in addition to Babycity, has confirmed it intends to sell its chain of Babycity stores as it reconciles its retail operations ahead of expansion.
The meeting of shareholders, to be held on Friday May 11 in Christchurch, is set to seal the brand's fate, with Postie Plus Group chairman Richard Punter revealing that entrepreneur Trevor Douthett, will be taking the reins.
“The purchaser we have a conditional agreement with is Baby City Retail Investments Limited, a company owned and operated by Trevor Douthett, along with private equity funding from people he has known for over 20 years,” Punter said.
“Mr Douthett, formerly of L V Martin, wants to enter the retail market as an owner operator and values the Babycity brand. He is looking forward to working closely with the existing team and Postie Plus Group Limited will continue to supply the Babycity business with apparel under a wholesale agreement.”
Punter added that the target for completing the transaction is the week commencing May 14, ahead of some significant developments for the Postie Plus Group.
“The sale of Babycity, which is subject to shareholder approval, is an important step to reconcile our business model to that of the Postie Group and our flagship retail brand. Babycity is a good brand but has not contributed sufficiently to our bottom line unlike Postie which has been growing continuously over the last three years,” he said.
“We believe that the group should
eventually be twice the size that it is today and while some of that
growth will be organic, we intend to acquire complementary brands
that we have identified to further develop our retail footprint
nationwide.”