Speaking to the Otago Daily Times, Mr Sugrue described the decision to “sell everything” as deeply emotional.
“I’ve been involved since 1988, so it’s a long time.
“I’m not sure I’m even happy saying I’m doing what I’m doing.”
The move follows growing public frustration from locals and the Waihemo Community Board over the deteriorating state of Ronaldsay St — the main street on State Highway1 — and the now-vacant railway station cafe.
Years ago, Mr Sugrue leased out the station in an attempt to revitalise it, but the venture failed, and the building has since fallen into disrepair due to vandalism and neglect.
“It got pear-shaped.
“I couldn’t get staff.
“Vandals damaged the building.
“Cars were getting keyed in the carpark.
“It was badly damaged.”
Though he had taken “positive steps” earlier this year to work with the community and the Waitaki District Council on revitalisation plans, he no longer had the time to give Palmerston the attention it needed due to his other business interests.
“I can’t give Palmerston what it deserves.”
Mr Sugrue’s business empire includes pie factories in Timaru and Palmerston North, with a third — a 2000sqm facility in Washdyke — under development.
The company is New Zealand’s second-largest pastry manufacturer and exports to Australia.
Waihemo Community Board chairwoman Heather McGregor acknowledged the importance of Mr Sugrue’s decision.
“The meetings we’ve had with Mr Sugrue have been positive.
“They will be valuable not only for the upcoming master plan but for whoever is the new investor or developer.”
Cr Jim Thompson said the council could not intervene in private business decisions, but he wished Mr Sugrue well.
“Unless something falls on the public, council can’t tell him what to do — good luck to him.
“We would all like to see a bright and fluffy main street, but councils can’t tell people how to run their businesses.”
Mr Sugrue’s connection to Palmerston is a personal one.
He completed his bakery apprenticeship at McGregors before buying into the business in 1988 at just 20 years old.
His wife Rilla began working there at 18, and the couple have run the business together for 35 years.
The company’s foundation business, McGregors, opened in 1913, which meant its pies had been selling for 112 years, Mr Sugrue said.
He was “disappointed” to have to sell it.
“I suppose there’s a time for everything.”
