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Veritas sells Nosh for $4 million

NZN 2/02/2017 Sophie Boot

Veritas Investments has sold its Nosh food supermarkets to Gosh Holding for $3.98 million.

The business and assets have been sold as a going concern and Gosh has agreed to assume Nosh's trade creditor liabilities under the transaction, which includes about $1m worth of stock, Veritas says.

The net sale proceeds after post completion adjustments will be used to repay Veritas group's bank debt to ANZ Bank New Zealand.

The transaction is due to be completed on February 10.

The food and beverage investor took on a $5m funding line with ANZ to buy the Nosh stores in 2014 but has struggled to turn the gourmet supermarkets into a profitable business.

Veritas renegotiated its banking arrangements in October to reduce its repayments and reschedule its debt, as its Mad Butcher and Nosh businesses weighed on the group.

Gosh is owned by Sydney-based Andrew Guy Phillips, its sole director and shareholder, according to Companies Office records.

It was incorporated late on Thursday morning.

Veritas shares rose 60 per cent to 24 cents, though they have shed half their value in the past year.

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