Warehouse Group is preparing to gear up investment and refresh the strategy at Noel Leeming after bedding in December's $65 million acquisition from buyout firm Gresham Private Equity.
Chief executive Mark Powell acquired the appliance retailer last year at a time when Gresham had been an owner for longer than typical in a private equity investor, having led a buy-out from Eric Watson's Pacific Retail Group in 2004.
Noel Leeming had been "severely cash constrained," Powell told reporters in Wellington. "That business needs investment in its store base. We were in negotiation for a long time (with Gresham) because we thought the seller didn't appreciate how much we needed to invest."
"If you don't invest it's going to catch up with you," he said.
Noel Leeming narrowed its annual loss to $615,000 in March 31, 2012, year from a loss of $3 million a year earlier, according to financial statements lodged with the Companies Office.