15-May-20 Trading halt on Smiths City Group Limited shares pending the release of an announcement by the company.
18-May-20 Sale of Smiths City Business announced - Directors anticipate the agreement settling on 22 May 2020.
20-May-20 Smiths City Conditional Sale - Clarification
Smiths City wishes to clarify the announcement released on Monday, 18 May. The proposed sale to Polar Capital is conditional on:
• Purchaser finance being confirmed.
• Smiths City shareholder approval.
• Smiths City financier approval.
Currently all conditions remain outstanding. The completion date under the sale and purchase agreement is the business day after the agreement becomes unconditional. Smiths City anticipates being in a position to update the market more fully this Friday 22 May.
21-May-20 Conditions Update
Smiths City confirms that it has made progress against the conditions for the sale of its business to Polar Capital. The sole outstanding condition is now Smiths City shareholder approval.
22-May-20 Smiths City enters receivership at Board’s invitation
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.
A brief history of Smiths City (or Smiths City Market for those of us who have been around for a while)
Founded in 1918 by Henry Cooper Smith as an auction house on Colombo St, the business initially auctioned grain, livestock and general goods, but later began to specialize in new and used furniture and hardware.
Smiths City Market Limited was registered as a private company in 1938 and was floated as a public company in 1972.
1st May 1991 The company was placed in receivership.
31st Dec 1991 The company was delisted due to receivership.
11th Mar 1994 Smiths City Group Limited was released from receivership – being the first publicly listed company in New Zealand to recover from receivership.
31st Oct 1998 Saw the end of the 5 year Scheme of Arrangement where creditors had become capital noteholders. 1998 also saw a dividend paid to shareholders - the first in 10 years.
November 2003 Smiths City Group Limited listed on the NZAX.
July 2004 Smiths City Group (SCY) transferred trading of its shares to the NZSX.
15th May 2020 Trading halt on Smiths City Group Limited shares pending the release of an announcement by the company.
22nd May 2020 Smiths City enters receivership at Board’s invitation in order to complete the sale of assets to Polar Capital.
9th Feb 2023 SCY - Smiths City Group Limited (in receivership) Delisted from NZX as at the close of business.
The Sector has a lot of competition & if SCY couldn't make a go of it without
spiralling downwards then the current owners with similar team & MO may
be finding similar head winds prevailing, if not worse ..
If it relisted many may be very wary about going anywhere near after
past business track record of receiverships etc
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Originally Posted by winner69
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