David Jones settles agreement

djsDepartment store, David Jones, has settled its agreement to take on the assigned lease of Lambton Quay in Wellington and pay $400,000 cash for the name “Kirkcaldie & Stains”.

Kirkcaldie & Stains shareholders voted July last year to sell the struggling brand and assign the store lease to David Jones, in a deal worth $400,000 with an option to purchase its fixed assets for $500,000 that it didn’t take up. The move followed a seven-year period of losses for the struggling Wellington company.

An arrangement to return $19.4 million of capital to Kirkcaldie & Stains shareholders still needs to be approved by the High Court. “At this stage shareholders are expected to receive distributions which will exceed the recent market value of their shares, but the precise amount will depend on a number of factors,” said chairman, Falcon Clouston, in a statement to the NZX.

“As a result of the sale of the Harbour City building, the company presently holds cash deposits of $18m with a further $4.75m receivable in October. The sale of the brand name is for A$400,000 and the fixed assets may produce up to $500,000,” said Clouston.

The current value of Stock as at 31 May 2015 was approximately $8.3 million before provisions said the company.

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