Building Depot in receivership but still trading

1.00pm

One of the country's biggest home improvement chains has been put into receivership.

The Building Depot, which has eight stores in New Zealand will continue trading while the receiver sorts out what went wrong.

Grant Jarrold, from Christchurch accounting firm Deloitte Touche Tohmatsu, said today he had been appointed receiver by the company's main debenture holder ANZ-National Bank.

The owner of the do-it-yourself chain is Mark Taylor, who bought the stores from Fletcher Building in September last year.

He also is a main shareholder in the Stirling Sports franchise and troubled stock exchange-listed retail management firm RetailX.

Mr Taylor could not be reached for comment today.

Mr Jarrold said it was too early to say if The Building Depot would remain open.

The chain of orange stores employs more than 200 people at sites in Wellington, Auckland, Hamilton, Tauranga, Palmerston North and Christchurch.

Its annual turnover is understood to be more than $60 million.

But in recent times The Building Depot trade has come under pressure from Australian newcomer Bunnings Warehouse and Mitre 10 and Placemakers.

RetailX (RTX) has the contract to run Stirling Sports and The Building Depot. RTX was suspended from trading on the stock exchange's alternative market, the NZAX, this morning.

The stock exchange said in a statment the stock had been suspended "on the basis that the market may not be equally informed on information that is material to RTX".

The exchange said the suspension would be lifted when it was satisfied the market was equally informed.

RTX's full-year losses for the year to March 31 were $473,000. Its shares first listed on the stock exchange's alternative market for 50c. There has been no trading since mid-July and the only offer for the shares is 4c.

- NZPA