Tindall can live with the liquor

Stephen Tindall

Stephen Tindall was in favour of The Warehouse's move into liquor and has rubbished reports it might cause him to sell his shares in the company.

He has also taken personal responsibility for the company's failed five-year foray into Australia, which culminated in the sale of its Yellow Sheds for A$92 million ($97.5 million) on Thursday.

In a show-stealing speech before his re-election as a Warehouse director at the company's annual meeting, Tindall took the opportunity to set the record straight after remaining silent through growing speculation in the past couple of months.

"I'd like to say that I am totally and fully committed to this company ... as I stand here today I see no reason why that commitment should ever falter," he told shareholders in a short address that drew applause from the crowd of about 200 in Auckland.

Reports that the company's founder might sell out first emerged in September, after the Herald reported the company had trademarked the phrase "The Warehouse Cellars" for beer and wine. Talk focused on Tindall's comments to the Evening Post newspaper in 1999 that the company would not sell alcohol while he was in charge.

In November, The Warehouse confirmed it had set up a joint venture to sell alcohol, prompting renewed interest in whether the 28 per cent of the company held by Tindall family interests or the 22 per cent held by Tindall's charitable organisation, The Tindall Foundation, could be sold.

Tindall said yesterday that when he had made the comment in 1999 beer and wine were only just being introduced into supermarkets. "In those days, we were a straight general merchandise and apparel retailer, and I felt it was inappropriate for that type of format to sell beer and wine."

Now the company has moved into consumable items and plans to move into groceries, and Tindall said he had also observed the responsible way supermarkets had offered beer and wine as a supplement to food.

"I was unanimous with our board in voting for The Warehouse Cellars adoption. As we move into more groceries and expand that grocery offer I believe it is actually appropriate that we embark in this area, it's the appropriate way for us to offer this, as an adjunct to food," he said.

Tindall also addressed The Warehouse's move to exit Australia, after one shareholder asked how much the company had poured into the investment in its five years there.

"I'm a humble shareholder in The Warehouse, becoming more humble over recent years," asked one shareholder . "Is there someone we can blame?" Chairman Keith Smith said about $250 million had been spent on the Australian foray, but that no one person could be blamed. "It was collectively done and it was appropriately done as well," said Smith.

Tindall said he took full responsibility for the decision, along with other directors. "If there's someone to blame ... please blame me. I'm prepared to take that fully on my shoulders," he said.

He said the board went into the investment with its eyes open. "We unfortunately did underestimate the competitive response. We underestimated what structure retail really took in Australia ... and for that I would like to stand up here and personally apologise," he said.

But Tindall said given the same information he probably would make the same decision again. "Taking risks for growth is the right thing to do."

Warehouse shares closed down 6c at $3.98 yesterday.