Farro Fresh deal to buy assets of Grocers Market from receivers

Farro Fresh has five Auckland stores and employs more than 400 staff. Picture / Dean Purcell

Farro Fresh is planning to open its sixth Auckland store after reaching a conditional agreement to buy the business assets of the Grocers Market from receivers.

Chief executive Bryce Howard said the price for the assets of Grocers Market, on the same site as the former Mt Eden Nosh, were confidential and the company was in negotiations with the landlord to secure the lease.

The company planed to open a store in late April or early May. Products sold at Farro included free range meats and seafood, a full-service deli, wine and craft beers, speciality grocery products and quick meal solutions.

"We're always looking to expand, finding the right piece of real estate is the hardest thing that any grocer has," Howard said.

"We expect to open up more stores similar to this over the next few years."

Farro was opened in 2006 by co-founders James and Janene Draper and the family-owned business has five Auckland stores employing more than 400 staff.

The company intended to stay in the Auckland region.

"We believe there's enough growth, there's enough people, there's no reason at the moment to go outside the Auckland area," Howard said.

The Mt Eden site would help the company to support the small artisan food community.

"A lot of customers have contacted us about the site on Dominion Road and begged us to take it on. We were approached by the receivers and we felt it was the right time," Howard said.

"The site location, parking and street level access is all very good and we feel we can deliver the full Farro offering within the current footprint."

Farro said it had maintained a strong commitment to supporting more than 550 small New Zealand artisan food producers during the last 12 years. It offered many small producers the opportunity to launch into the food retail shopping environment.

"What is really exciting is, that as Farro grows, its suppliers also grow," Howard said. "A sixth Farro store, will enhance a secure environment for our small producers."

Farro would help the receivers manage the remaining stock from the previous owner. Most of the perishable goods would be donated to food rescue charities.

The company said any outstanding debts to current suppliers rested with the receivers and liquidators.