No EziBuy ownership worries for Palmerston North mayor

Monday, 25 November 2019

The change of controlling ownership of Palmerston North-founded company EziBuy should strengthen rather than weaken its continuing presence in the city, says mayor Grant Smith.

After a period of ownership by supermarket giant Woolworths, EziBuy was sold to Alceon in 2013, which has now sold a controlling share to a related company Noni B.

The Australian retail group manages brands including Katies, Millers, W Lane, Rivers, Rockmans and Crossroads.

Noni B has bought its interest in EziBuy for $1, with an option to buy the balance by the end of 2020 for $11 million.

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Alceon owns a 35.9 per cent stake in Noni B.

Alceon executive director Richard Facioni, who also has a role in Noni B, said in 2018 that EziBuy's New Zealand call centre was 'a jewel of an asset' and the distribution centre was a good facility in a great location.

Although Alceon was planning to move some of its distribution operations to Brisbane, he predicted the Palmerston North centre would continue to be a strong and growing part of the business.

Smith said he had met EziBuy managers recently and was confident about their plans to enhance the New Zealand base for the business, particularly its Palmerston North distribution centre and call centres.

'They are probably in a more sustainable space than they were a few years ago.

'This new business is very much a fashion and retail specialist, and the changes that have been made in the last year probably strengthen the business, which I think means security of jobs here and possibly some more jobs.'

Smith said the company representatives he had met ran a lot of distribution centres and were impressed with the operations in Palmerston North.

He said wherever there was foreign ownership of a local employer, it was understandable people would be cautious about the implications of changes.

But the information he had was that EziBuy was now part of a group that was profitable and sustainable, and he was not expecting there would be cause for lay-offs.

Stuff has contacted EziBuy for comment on the implications for Palmerston North.