KRK Kirkaldies & Staines

[coge]

Hey everybody. Been a long time. Saw an article on an offer to buy the retail operation of KRK, anyone got the goss on what it's all about? Got a few ideas myself, just need more info. Cheers

[macduffy]

What article was that?

The DomPost ran a recent story on Kirks - I think it was a Chalkie column - which mentioned the pressure that the company might be under from certain shareholders to realise the value from its property holdings. Didn't mention an offer to buy the retail business - or if it did, I missed that!

[coge]

Hi macduffy, here 'tis. http://www.stuff.co.nz/business/industries/retail/6150685/Kirkcaldie-Stains-asked-to-sell

[winner69]

A look around the Occidental Bar on a friday night might give you an idea of you this mysterious interested party is ........ occasionaly makes their way to the Matterhorn later on in the night

[winner69]

So finally realising the value of the hcc building ......prob get $50m odd ....in the books at less than $30 m so huge book profit and pay the loans of and heaps of cash to give back to shareholders ....wouldn't want to leave that amount of cash in the business for the retail manager to let slip away

And market cap today abouth the cash they might have left over if this deal goes ahead ... that was today .... next week will be different story

Lets see what happens eh

[winner69]

lnteresting Random Walker and FIGJAM seem to have deleted their posts on this thread ... I for one pleased Elevation did some stirring

[Sauce]

amusing...

[coge]

http://money.msn.co.nz/businessnews/national/8555648/kirkcaldie-shares-surge-on-property-sale

[Mista_Trix]

Is KRK an asset play? Buildings alone worth ~$30M smack bang in the middle of Wellywood with assets listed at $40M+. If the company could stay in profit and get another suitor for either/both buildings (they are EQ strengthened as well), could this at least double the stock price? Seems to be inevitably stuck in a downtrend on very low volume, but could easily shoot higher like October last year...

The last two times I've been in there I haven't purchased anything.
First one - was after a cologne right there and then, but saw it was $40 more expensive than the internet.
Second, me and the gf went to buy some stuff for the house, I was in shorts on the weekend (normally have to wear a suit for work) and got the impression that they were unimpressed with us, and gave poor service across multiple staff.

It doesnt seem to quiteknow who its market are. It's not the ritzy establishment it once was, and its putting off new customers who may otherwise have spent money there. I don't think it will last IMO. How long it will take to die though is anyones guess.

But yeah, incredibly central land. But my gf works in the same building and man its dated. Not to mention after the earthquakes while there was no structural damage, there's artificial cracking all up the internal walls.

[macduffy]

Just to clarify, Kirks don't own the building in which the store is located but they do own the Harbour City Centre building - formerly the DIC Building -across the road. It's a much older building, been strengthened in the past and again recently, has Contact Energy as its main office block tenant and a variety of retailers at ground and first floor levels. Kirks previously used some of this retail space but have recently consolidated back to the main store.

I'd agree they're largely a property play at this stage but just how good their property is I'd leave it to others to determine.

Disc: Not holding.

[winner69]

Sounds like some shareholders (the property play ones) are a bit pissed at no certainty of shareholders getting cash from the sale of the building

Even Chairman talk f maybe closing Kirks down .....but no doubt keen on using the cash to have one last go in making Kirks viable

When Rod Duke is selling Wedgewood and Royal Doulton you know Kirks ads are numbered.

Even the $1200 pair of casual pants with $100 belt that looked nice with the $700 shoes and the $150 polo didn't tempt me to go in. The mannequin looked pretty cool though

[J R Ewing]

Sounds like some shareholders (the property play ones) are a bit pissed at no certainty of shareholders getting cash from the sale of the building

Even Chairman talk f maybe closing Kirks down .....but no doubt keen on using the cash to have one last go in making Kirks viable

When Rod Duke is selling Wedgewood and Royal Doulton you know Kirks ads are numbered.

Even the $1200 pair of casual pants with $100 belt that looked nice with the $700 shoes and the $150 polo didn't tempt me to go in. The mannequin looked pretty cool though

Perhaps they should take a lesson from Kathmandu and make it a $4000 pair of pants marked down to $1200, $400 belt for $100, $3600 shoes for....

Would that have tempted you?

[Chaowee88]

Sounds like some shareholders (the property play ones) are a bit pissed at no certainty of shareholders getting cash from the sale of the building

Even Chairman talk f maybe closing Kirks down .....but no doubt keen on using the cash to have one last go in making Kirks viable

When Rod Duke is selling Wedgewood and Royal Doulton you know Kirks ads are numbered.

Even the $1200 pair of casual pants with $100 belt that looked nice with the $700 shoes and the $150 polo didn't tempt me to go in. The mannequin looked pretty cool though

Most likely they will stay in operation until at least 7th October 2015, when the final payment of 4.75 mill comes in for the sale of HCC.

One thing now goin for Kirks is they're debt free, that will save a fair bit in finance costs as they previously had 23.5 mill in debt.

They're debt free and also with cash of 16.8 mill and 4.75 to come in next year based on an asset play alone it could be worth a go, assuming they don't burn all their cash...

[GTM 3442]

A lot of people have waited a long time in the hope that there will be a return from the property aspect of KRK.

Thus far the wait has been in vain.

I think it's likely that the retail operation will prove more than capable of burning any cash available to it-and possibly more.

[BFG]

A lot of people have waited a long time in the hope that there will be a return from the property aspect of KRK.

Thus far the wait has been in vain.

I think it's likely that the retail operation will prove more than capable of burning any cash available to it-and possibly more.

Too bad some Directors just don't know when to call it quits...

[noodles]

Most likely they will stay in operation until at least 7th October 2015, when the final payment of 4.75 mill comes in for the sale of HCC.

One thing now goin for Kirks is they're debt free, that will save a fair bit in finance costs as they previously had 23.5 mill in debt.

They're debt free and also with cash of 16.8 mill and 4.75 to come in next year based on an asset play alone it could be worth a go, assuming they don't burn all their cash...

I would investigate their lease commitments. I understand Robert Jones has them paying a high rent for a number of years.

[noodles]

I would investigate their lease commitments. I understand Robert Jones has them paying a high rent for a number of years.
RIP: Kirkaldies is being liquidated. With NTA in the range of $2.91 and a current price of $2
The lease is going to be transferred to David Jones.

[coge]

http://www.anzsecurities.co.nz/directtrade/dynamic/announcement.aspx?id=3885829

[winner69]

RIP: Kirkaldies is being liquidated. With NTA in the range of $2.91 and a current price of $2
The lease is going to be transferred to David Jones.

RIP indeed .... never shopped much there but was interesting to have a look through.

How the might fall in these changing times ..... a real fire sale. Nice of David Jones to show some respect and pay $400k for the name. Doubt if they would want the fittings if they doing a big revamp. The grand piano the old guy played in the entrance might be worth keeping to keep a bit of continuity for the oldie types.

The revitalisation of Lambton Quay - a David Jones and a Top Shop.

Watch the council put up the parking fees even further .... cant let Wellingtonians have too much fun can we.

You making a bob on this noodles?

I just might wait for the clearance sales ..... see whether that nice jersey I fancy gets educed form $900 to less than $100

[minimoke]

Ah, Kirks. i have fond memories of being attacked by two women armed with umbrellas during an infamous Kirks sale. I didnt stand a chance!

[Mista_Trix]

I'm early thirties, lived in Wellington most of my life and only ever had bad experiences at Kirks.

My last was when I'd gone there in the weekend in shorts and a hoodie (it was summer), the looks I got from the staff and total lack of help when asking about business attire (which I wear throughout the week) made me feel like they had pigeon-holed me and assumed I didn't have the money to spend, nothing was further from the truth. The time before that was when I enquired as to the price difference on the same product mens cologne - $99 at farmers not on discount, $139 at Kirks, I indicated I would rather purchase through them, but again the staff indicated they would rather 'I' shop across the road.

Good riddance, to a company that struggled to adapt to the changing times.

[macduffy]

Ron B has upped his bid for Kirks to $3 - 1c above the minimum final payout expected by the KRK board. Seems the fat lady hasn't sung yet.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11629693