Tainui to quit seafood company

Tainui is to cut loose its struggling inshore fishing company, Raukura Moana Seafoods.

The Waikato Times reported that the company's 12 staff were told last week that the operation was likely to close within two weeks.

It is understood the wholesale and retail operations will be sold, with the tribe holding on to the company's fishing quota, which is worth around $5 million annually.

Tainui Group Holdings chief executive Steve Murray said the business was not sustainable. There was no option but to recommend closure.

"The ownership of the resource [fishing quota] is far more beneficial to the group than having a retail business that has limited growth prospects," he said.

Raukura Moana Seafoods manager Barbara Anderson said the staff were shocked and disappointed to hear of the pending closure.

However, she said they had until Friday to come up with a recovery plan for the company, which has struggled to turn a profit since being bought by the tribe in 1997. It leases its fishing boats to Hawkes Bay Seafoods.

A review of Raukura Moana Seafoods in 2000 found it had performed poorly since Tainui took over, was badly managed and lacked financial information and control systems.

- NZPA