Founder Sir Stephen Tindall and a private equity firm are potentially eyeing shares in the struggling The Warehouse Group.
The Warehouse Group today issued a “don’t sell” notice on the NZX after it received an approach from Sir Stephen and Australian investment manager Adamantem.
“The Warehouse Group Limited advises its shareholders and other stakeholders that it has received an approach from Sir Stephen Tindall and private equity firm, Adamantem Capital Partners in relation to potential interest in acquiring its shares,” it said.
“The Company advises you not to sell your WHS shares pending further advice from the Directors.
“The Board of Directors cautions shareholders that the approach received did not constitute an offer by any person to acquire the business of the Company or shares of the Company, and that it, and any consideration of other alternatives, may not result in any proposal. The Company will update the market as appropriate of relevant developments.”
It comes amid a tough period at the retail group, which is focusing its efforts around The Warehouse, Warehouse Stationary and Noel Leeming.
Chief executive Nick Grayston left earlier this year and the company is bracing for a drop in earnings. Jobs are also on the line at its head office.
Sir Stephen started The Warehouse in 1982 and was managing director until 2001.
He owned around 27% of the company while the Tindall Foundation owned 21.31%.
Adamantem was an Australian investment manager.