Commercial Big move south by J. Rattray

Press, 20 April 1979, Page 12

Commercial Big move south by J. Rattray

J. Rattray and Son, Ltd, Christchurch wholesale distributor of groceries, softgoods, and hardware will purchase most of the grocery business of Wilson Neill, Ltd, Dunedin, grocery and wine merchant, and fish and game exporter. J. Rattray will pay cash for Wilson Neill’s grocery interest, except Wardell’s supermarket, in Dunedin.

The cost of the aquisitions, with turnover in the millions, bas not been disclosed. However, businesses with millions of dollars of turnover, and assets to support tales of that magnitude do not change hands cheaply.

J Rattray will be acquiring wholesale outlets and retail stores in South Canterbury, Otago, and Southland. The Christchurch company tireadv has wholesale stores fi Dunedin, Christchurch, imaru, Oamaru, Gore and Invercargill.

From Wilson Neill it will buy wholesale outlets in Fimaru, Dunedin, and Invertargill, suggesting some rationalisation could be planned for these centres. J. Rattray will also acquire five retail shops in Timaru; four in Dunedin; one in Queenstown; and one in Invercargill.

In reporting to the stock exchange yesterday the companies only said: “The directors of J. Rattray and Son, Ltd, and the directors of Wilson Neill, Ltd, advise that in agreement has been contluded and signed for the fale by Wilson Neill to Rat-

trays of its entire grocery division. “With minor exceptions, all grocery division assets and staff will be taken over by Rattrays. The date of transfer and possession is June 2.

“The consideration is in cash, and no issue of shares is involved. “The directors believe that the agreement concluded is in the best interests of both companies. “It is Rattrays’ intention that the operation of Wilson Neill will continue to trade in a similar manner as present with a minimum disturbance to staff. “For Wilson Neill the sale on a going-concern basis provides employment for staff of the division, and will realise additional funds for investment in other divisions of the company.”

However, the chairman of Wilson Neill (Mr J. A. Valentine) said in Dunedin last night that the old-established George Street store, Ward ells would be closed as a grocery unit, but its coffee bar would continue, and Wilon Neill would transfer its Kelvinator House business into the Wardell building. “Main street grocery shopping is not viable in the present climate, and Rattrays did not want to takeover this shop,” he said. The closure will mean the disappeamace of a longstanding source of gourmet foods in Dunedin, but Mr Valentine said there would

probably be some onflow of this business to other people in the vicinity if they wished to take it up.

He would not disclose the settlement sum, but said it was “in the millions.” “In the areas in which we operate in grocery, there has been continuing investment in new facilities and increasing competition in recent years,” Mr Valentine said. “In spite of the substantial size of our own operations in grocery, the board of Wilson Neill does not believe that the grocery division, as it is presently operating, has a viable future. In these circumstances, it is much better for the staff and for the company that the division be sold to a strong operator.” “The sale of the division will release substantial funds for alternative investment. There are continuing opportunities in the three remaining divisions — export, home appliance, and liquor —for utilisation of the funds available. We have recently extended our liquor operations to Christchurch by purchasing the Eastern Tavern, and have further extensions planned in Dunedin,” Mr Valentine said.