Shareholders query High Street sale

Press, 25 November 1982, Page 24

Shareholders query High Street sale

The directors’ of Ashby Bergh and Company, Ltd, were questioned about the decision to sell its. High Street store in Christchurch at yesterday's annual meeting. The company's biggest shareholder, Mr M. L. Coffey, quoted from the 1980, 1981 and 1982 annual reports which said that High Street was trading well. The 1982 annual report quoted monthly increases in sales at the’ High Street shop. Ashby Bergh's new chairman, Mr C. H. Francis, said that the first-floor stereo department had always shown a profit, but sales from the sports department had lagged. The gross profit from the Manchester Street hardware department had increased 39 per cent, but it was down 1 per cent at the High Street store in the latest year,

though sales were increasing. '

Since the city mall had been established traffic flow 7 had slowed in High Street, and a taxi rank had been established outside the shop front, he said. Another director, Mr N. G. Milne, said that the board had been concerned about the progress of the High Street store for some time.

Some criticism could be levelled at the directors for allowing the modernising of the first floor to improve sales, but the return from the sports department was not good, he said. Mr R. C. Saunders, a director, said that by concentrating on the Manchester Street site “it seems as if we are putting all our eggs in one basket, but if it does not work you can shoot the directors.” However, there were

shareholders who supported the decision. Shareholders were told that the sale of the High Street building was worth $360,000, of which about $150,000 would be capital profits available to them in tax-free dividends.

The chairman, Mr Francis, said that the alterations to the Manchester Street showroom would give about 50 per cent more space to display goods, and that the cost of the development would be under $200,000. .

Further development of the area would be undertaken making the Manchester Street store a prime site, he said. The shareholders acknowledged their debt to the company’s previous chairman, Mr C. W. Evans, who retired from the position on November 16. Mr Evans had been a director since 1957, and chairman since 1960.