AUCKLAND: The Warehouse Group has sold its outdoor brand Torpedo7 to Tahua Partners Limited, a 100% Kiwi owned and operated business, for $1. The deal will allow The Warehouse Group to focus on its core brands and improve its financial performance.
Torpedo7, which represents only 5% of The Warehouse Group’s sales, has faced challenges due to lower consumer demand post-Covid and a global decline in the bike market. The sale will result in a non-cash, pre-tax accounting write-down of up to $65 million in the FY24 Half Year Income Statement.
Tahua Partners Limited will take over Torpedo7’s assets and obligations, including leases, gift cards, online orders, and customer returns. The majority of the permanent Torpedo7 team will be offered employment by the new owner.
The Warehouse Group Chief Executive Officer Nick Grayston says the sale of Torpedo7 is part of their strategic reprioritisation to simplify their focus and deliver better value to shareholders and customers. He says he is pleased that Torpedo7 will continue to serve Kiwi customers who want to enjoy outdoor adventures.
The sale is expected to be completed by the end of March 2024. The Warehouse Group will release its FY24 interim results on 20 March 2024.