NZ’s Warehouse Group founder seeks to build stake, expand into grocery

The Warehouse Group says it has received an approach from Sir Stephen Tindall and Adamantem Capital Partners about a potential interest in acquiring its shares.

The company, however, advised shareholders not to sell their shares.

“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,” said the company.

Tindall founded The Warehouse Group in 1982. Currently, Tindall and the Tindall Foundation own more than 50 per cent of the group.

The Australian reported that Adamantem had been assessing a potential acquisition with Tindall, who seeks to position The Warehouse as New Zealand’s third supermarket player.

The plan to expand the range of grocery products sold through The Warehouse discount department store chain comes amid a cost of living crisis in New Zealand and growing concerns about a duopoly in the market comprised of local cooperative network Foodstuffs and Australia’s Woolworths Group.

Last month, The Warehouse Group said it expects sales from continuing operations to decline 6 per cent to 7 per cent from last year.

In addition, it forecasts earnings before interest and taxes to be between $22 million and $30 million, compared to $83.4 million in the prior year.

Earlier this year, The Warehouse Group sold Torpedo7 to Tahua Partners in a move it said would allow it to focus on its core brands and improve financial performance.

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