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  1. #331
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    As previously advised to the market Smiths City (NZX.SCY) has been undertaking a restructuring process. Smiths City can now advise that the following stores will close in the coming weeks:

    • Mount Wellington
    • Kapiti
    • Porirua
    • Whangarei
    • Invercargill clearance centre
    • Lower Hutt
    • Christchurch outlet

    The company is still negotiating new lease terms for other stores and will advise of any other store closures when the negotiations are concluded.
    Smiths City expects to provide an update on the proposed sale soon.

    https://www.nzx.com/announcements/353543

  2. #332
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    Quote Originally Posted by CD_CHCH View Post
    Smiths City names 'turnaround specialist' Roy Campbell as CEO - April 2015

    https://www.nbr.co.nz/article/smiths...-ceo-bd-171399

    Roy Campbell

    CEO

    Smiths City Group.

    May 2015 – Present 5 years 1 month

    Christchurch, New Zealand

    I was recruited to give this NZX listed, troubled national retailer a last bid at profitability. Over my 5 year tenure I comprehensively restructured the business. I Introduced a customer centric focus, shed costs, united the retail team, recruited rising stars from within the NZ retail market and implemented significant innovation strategies to maximise the ROI for as long as possible. The first three years saw a significant shift in brand awareness, purchasing capability, balance sheet improvement and positive culture shift. SCG grew its store numbers, rebranded its major stores, implemented a smarter purchasing scheme and focussed on the NZ consumer. The close of my tenure was due to the selling of the business.

    https://nz.linkedin.com/in/roycampbell
    Last edited by CD_CHCH; 22-05-2020 at 02:57 PM. Reason: Formating

  3. #333
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    Quote Originally Posted by CD_CHCH View Post
    Roy Campbell

    CEO

    Smiths City Group.

    May 2015 – Present 5 years 1 month

    Christchurch, New Zealand

    I was recruited to give this NZX listed, troubled national retailer a last bid at profitability. Over my 5 year tenure I comprehensively restructured the business. I Introduced a customer centric focus, shed costs, united the retail team, recruited rising stars from within the NZ retail market and implemented significant innovation strategies to maximise the ROI for as long as possible. The first three years saw a significant shift in brand awareness, purchasing capability, balance sheet improvement and positive culture shift. SCG grew its store numbers, rebranded its major stores, implemented a smarter purchasing scheme and focussed on the NZ consumer. The close of my tenure was due to the selling of the business.

    https://nz.linkedin.com/in/roycampbell
    He gone? Or about to?

    Did a sterling job that guy ....well done
    “Just consider that maybe the probability of you being wrong is higher than you think.”

  4. #334
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    Smiths City enters receivership at Board’s invitation

    Smiths City enters receivership at Board’s invitation
    Appointment of receivers follows an agreement to sell stores and Smiths City Finance to Polar Capital

    Smiths City (NZX.SCY) today announces it has invited its largest secured creditor ASB to appoint receivers to Smiths City Group Limited and Smiths City (Southern) Limited (“the Companies”). As a result, Colin Gower and Diana Matchett of BDO Christchurch and Andrew Bethell of BDO Auckland have been appointed as the Joint Receivers and Managers of the Companies.
    The appointment of the Receivers follows the conditional agreement announced to the NZX on Monday 18 May 2020 to sell all of Smiths City Finance and most of Smiths City’s stores to Polar Capital, a business owned by Colin Neal, founder of the refrigerated logistics company Big Chill. It also follows Polar Capital’s confirmation on Wednesday 20 May 2020 that it had secured ongoing funding for the assets it intends to acquire.
    Rather than putting the sale of the assets to Polar Capital to a shareholder vote, Directors sought to appoint receivers for the following reasons:
    • Smiths City’s shareholders’ approval was the only condition outstanding.
    • Smiths City’s ordinary shares will retain no value following the sale .
    • Further delay risked jeopardising the completion of the sale and a reduction in the amount available to secured and unsecured creditors. The business cannot function without the confidence of suppliers and customers.
    • A receivership would ensure the timely and orderly transition of the assets to Polar Capital, protect their value and the jobs of the approximately 350 people expected to transition to the new owners with the sale.
    • The Board considered an insolvency process was inevitable. If shareholders rejected the transaction, the Board would have requested that Receivers be appointed as the financial position of the company was not sustainable.
    In the knowledge that shareholder value was extinguished, the Board’s duty became to preserve as much value as possible for creditors. The appointment of Receivers today was necessary to fulfil that duty.
    Immediately on appointment the receivers waived the remaining condition and settled the sale.
    All stores are open as usual today. As advised to the market earlier today, Smiths City will close seven stores as the result of a restructure. Those stores: Mount Wellington, Porirua, Lower Hutt, Kapiti, Whangarei stores, the Invercargill clearance centre and the Christchurch outlet store, are expected to be closed in the coming weeks.
    The Receivers’ first report on the state of affairs with respect to the property in receivership will be prepared no later than two months after their appointment.

    Smiths City Chair Alastair Kerr said: “While the outcome is disappointing for shareholders, we are pleased to have been able to take steps to protect Smiths City’s legacy and the hundreds of jobs that will transition to the new business. The Board will now work to ensure an orderly transition of Smiths City Group to the Receivers.”
    Polar Capital’s Colin Neal said: “Smiths City today opens a new chapter in its more than 100-year history of serving heartland New Zealand. All the stores we have acquired will be open for trading today, doing what they do best: offering great quality products, excellent value and no-nonsense service.
    “Commitments made to customers will be unaffected by the receivership and the sale. If, customers have paid for a product they will get the product. I am looking forward to working with Smiths City’s people and the communities in which we operate to build on the company’s position at the heart of New Zealand retailing.”
    The Board is also sending the enclosed letter to shareholders today to give further background on why this course of action has been necessary.

    https://www.nzx.com/announcements/353582

  5. #335
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    Quote Originally Posted by CD_CHCH View Post
    Roy Campbell

    CEO

    Smiths City Group.

    May 2015 – Present 5 years 1 month

    Christchurch, New Zealand

    I was recruited to give this NZX listed, troubled national retailer a last bid at profitability. Over my 5 year tenure I comprehensively restructured the business. I Introduced a customer centric focus, shed costs, united the retail team, recruited rising stars from within the NZ retail market and implemented significant innovation strategies to maximise the ROI for as long as possible. The first three years saw a significant shift in brand awareness, purchasing capability, balance sheet improvement and positive culture shift. SCG grew its store numbers, rebranded its major stores, implemented a smarter purchasing scheme and focussed on the NZ consumer. The close of my tenure was due to the selling of the business.

    https://nz.linkedin.com/in/roycampbell
    Quote Originally Posted by winner69 View Post
    He gone? Or about to?

    Did a sterling job that guy ....well done
    Quote Originally Posted by dubya View Post
    I wonder if the head trougher (salary last annual report $520,000-530,000) will be keeping their job?
    I guess my question from yesterday has now been answered lol. Yes.....sterling service indeed @ approx $10,000 pay per week. Thanks for coming Roy.

  6. #336
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    At least Alistair sent his kind regards to shareholders
    “Just consider that maybe the probability of you being wrong is higher than you think.”

  7. #337
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    Quote Originally Posted by CD_CHCH View Post
    Roy Campbell

    CEO

    Smiths City Group.

    May 2015 – Present 5 years 1 month

    Christchurch, New Zealand

    . The close of my tenure was due to the selling of the business.

    https://nz.linkedin.com/in/roycampbell
    Should be a politician. Sounds deluded to me.
    Last edited by blackcap; 22-05-2020 at 03:55 PM.

  8. #338
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    History repeats itself

    Smiths City went into receivership some 39 years ago.

    Came out of receivership 3 years later
    “Just consider that maybe the probability of you being wrong is higher than you think.”

  9. #339
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    There is no prospect of the second leg of history repeating itself this time!

  10. #340
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    Smiths City names 'turnaround specialist' Roy Campbell as CEO - April 2015

    https://www.nbr.co.nz/article/smiths...-ceo-bd-171399



    Roy Campbell

    CEO

    Smiths City Group.

    May 2015 – Present 5 years 1 month

    Christchurch, New Zealand

    I was recruited to give this NZX listed, troubled national retailer a last bid at profitability. Over my 5 year tenure I comprehensively restructured the business. I Introduced a customer centric focus, shed costs, united the retail team, recruited rising stars from within the NZ retail market and implemented significant innovation strategies to maximise the ROI for as long as possible. The first three years saw a significant shift in brand awareness, purchasing capability, balance sheet improvement and positive culture shift. SCG grew its store numbers, rebranded its major stores, implemented a smarter purchasing scheme and focussed on the NZ consumer. The close of my tenure was due to the selling of the business.

    https://nz.linkedin.com/in/roycampbell




    I was recruited to give this NZX listed, troubled national retailer a last bid at profitability.

    14-Apr-15 The Board of Smiths City Group announced late last year that our Managing Director for the last 15 years – Rick Hellings – was stepping down and as a result a search process had commenced. We are pleased to announce the appointment of Roy Campbell as Chief Executive Officer. Roy will start on 1st May 2015. In welcoming Roy we also wish to acknowledge the successful leadership of Smiths City through many periods of disruption and intense competition by Rick Hellings, our outgoing Managing Director. Rick has been with us for 30 years, half that time as Managing Director.

    Audited full year financial results to 30 April 2015 - Profit before tax of $9.3 million up from $4.7 million in the prior year. NTA per share 90.16 cents. 3.5 cents per share Gross Dividend paid. Share price 56 cents (Yahoo Finance) - Looks pretty profitable to me before Roy started

    30-Oct-2015 Sale of Colombo St property for $20 million

    19-Jan-2016 Smiths City (Southern) Limited (Southern) has entered into a conditional agreement (Conditional Agreement) to purchase the business and assets of both Panmure Furniture City 1983 Limited (Furniture City) and its logistics operation Lucky Dragon Limited (Lucky Dragon). Auckland based, Furniture City, has stores in Auckland and Whangarei. Purchase price - $5.85m plus GST (if any)

    1-Apr-2016 Purchase of Panmure Furniture City and Lucky Dragon Ltd settles

    The first three years saw ~ balance sheet improvement

    17-Apr-2018 Smiths City trading update - Trading losses for the year are expected to range between $1.25 million and $1.75 million compared to a trading profit of $2.0 million last year. In addition to the trading loss, Smiths City expects to make an impairment provision of $4.8 million relating to the leases on stores that have consistently underperformed due to factors including: changing trading patterns, a shift in local conditions due to the opening of new retail hubs, and onerous leases. The net loss before tax is forecasted to range between $7.0 million and $8.0 million compared to a profit of $2.4 million in the same period last year. “Meanwhile, the disruptions to trading caused by the refurbishment and rebranding of the former Furniture City stores in Auckland and Whangarei and the closure of the Ngauranga Gorge store in Wellington in November have weighed heavily on the results. “The rebranded Auckland stores, which reopened at the start of December, are not yet delivering to our expectations. Although we are making strong sales of appliances – a category previously not available in the former Furniture City stores – furniture sales are yet to recover to levels prior to the rebrand.

    Audited full year financial results to 30 April 2018 - Net loss before tax of $9.9 million down from a net profit of $2.0 million in the prior year. NTA down to 80 cents. Dividend cancelled. Share price 45 cents (Yahoo Finance) - 3 year change from $9.3 million profit to $9.9 million loss ($19.2 million variance) NTA reduced by 11.3%. Share price down 19.6%. Dividend down 100%.

    The close of my tenure was due to the selling of the business.

    May 2020 Smiths City enters receivership following the sale which involves the acquisition of all of Smiths City Finance and the great majority of Smiths City’s stores. Directors believe Smiths City’s ordinary shares will retain no value.

    2 out the 3 Panmure Furniture Stores purchased in 2016 to be closed (Mount Wellington & Whangarei) The other Panmure Furniture Store in Wairau Park was closed Nov 2019. So a few years after paying $5.85 millon plus GST (if any) for the chain all the stores have been shut. Perhaps selling their major asset - the Colombo St site - was a really stupid idea.

    Assuming the CEO to be the highest paid staff member and taking the lower of the salary band figures published in the 30-Apr-2016 to 30-Apr-2019 annual reports show that presumably Roy was paid at least $2.25 million during those 4 years excluding whatever he has been paid to 30-Apr-2020.

    2016 $ 480,000
    2017 $ 670,000
    2018 $ 580,000
    2019 $ 520,000
    2020 $ ???
    Total $ 2,250,000

    Well the business was certainly 'turned around' - perhaps not quite in the direction the shareholders would have preferred. Question is did shareholders get value for money for the remuneration paid to the 'turnaround specialist' ?


    Last edited by CD_CHCH; 23-05-2020 at 05:28 PM. Reason: Added info re Wairau Park Store

  11. #341
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    If I were a shareholder I would want to know one thing.

    At the last HY I note that there is cash in the bank of $9m and NTA of 67 cents per share. (being operationally cash flow positive as well albeit just)

    What have the company done with that NTA and cash? Or if the NTA was not realistic, why have the auditors not said anything.

    Either way there is a discrepancy or something very illogical going on.

  12. #342
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    Obviously not that much cash left in the kitty

    Many have no job ....but some saved

    https://www.stuff.co.nz/business/121...ff-in-the-cold
    “Just consider that maybe the probability of you being wrong is higher than you think.”

  13. #343
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    Quote Originally Posted by blackcap View Post
    If I were a shareholder I would want to know one thing.

    At the last HY I note that there is cash in the bank of $9m and NTA of 67 cents per share. (being operationally cash flow positive as well albeit just)

    What have the company done with that NTA and cash? Or if the NTA was not realistic, why have the auditors not said anything.

    Either way there is a discrepancy or something very illogical going on.
    Smiths City Directors as follows:

    Alastair Gibson Kerr - Chair
    Tony Donald Allison
    Benjamin John Powles
    Antony David Karp

    30-Apr-19 Audited Annual Report. NTA 77 cents per share. Shareholders’ equity as at 30 April 2019 $42.6 million

    5-Sept-19 2019 ASM Speeches - Alastair Kerr "We remain well funded"

    13-Dec-19 Smiths City Interim Financial Statements for the 6 months ending 31 October 2019. NTA 67 cents per share. Shareholders’ equity as at 31 October 2019 $37.4 million (Unaudited)

    18-May-20 Directors believe Smiths City’s ordinary shares will retain no value following the sale.

    So in the last year under the directors watch $42 million of shareholder's equity has been lost.

    This is in addition to the creditors and landlords that are out of pocket, and the human cost of 115 hardworking loyal staff no longer employed, and according to the media article income reductions for others taken on by Smiths City (2020)

    The directors should be ashamed of themselves.

  14. #344
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    Quote Originally Posted by CD_CHCH View Post
    In the knowledge that shareholder value was extinguished, the Board’s duty became to preserve as much value as possible for creditors.
    I question the legality of this statement.

    There are ‘safe harbour’ provisions that legally protect companies from the effects of Covid-19. The government amended sections 135 and 136 of the Companies Act 1993

    https://companies-register.companies...any-directors/

    -the company was able to pay its debts as they fell due on 31 December 2019
    -the company will be able to pay its debts as they fall due within 18 months


    I am not a SCY shareholder but I believe a class action lawsuit against the directors of SCY may be warranted.

  15. #345
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    Quote Originally Posted by Ogg View Post
    I question the legality of this statement.

    There are ‘safe harbour’ provisions that legally protect companies from the effects of Covid-19. The government amended sections 135 and 136 of the Companies Act 1993

    https://companies-register.companies...any-directors/

    -the company was able to pay its debts as they fell due on 31 December 2019
    -the company will be able to pay its debts as they fall due within 18 months


    I am not a SCY shareholder but I believe a class action lawsuit against the directors of SCY may be warranted.

    Yes - agree there .. small holder here but would seriously consider joining a Class Action Lawsuit on this

    In the very least - the SCY Reporting & Directors' actions warrant investigation
    ... the fine art of sniffing out debits & credits hidden under the carpet can pay dividends ...

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