The Warehouse chief executive Mark Powell is playing down the significance of an Australian company's aborted investment in Torpedo7, the online retailer in which his firm has become the majority shareholder.
In March last year ASX-listed Carsales.com revealed it had purchased a 15 per cent stake in the Hamilton-based internet sports gear seller, which also operates the 1-day daily deal and UrbanDaddy websites, for A$7.2 million.
Just over two months later, however, Carsales.com announced it had come to a mutual agreement with the New Zealand firm to "unwind" its investment as a result of "circumstances isolated to the Torpedo7".
Race Louden, Torpedo7's marketing general manager, was quoted in a media report as saying it had become clear that an investment from a listed company would have a "potentially limiting" influence on the business.
"We found with a shareholding you got the benefit of [Carsales'] capital, but it was potentially limiting for a business like us which is different and, for want of a better word, anti-corporate and very entrepreneurial," Louden was reported as saying.