Warehouse Group sells Torpedo7 for $1

The Warehouse Group has announced the sale of its outdoor brand, Torpedo7, to Tahua Partners for $1.

The sale includes Torpedo7's assets, obligations, and the majority of its permanent team, and is expected to be completed by the end of March 2024.

The Warehouse Group's chief executive, Nick Grayston, explained that the decision to sell Torpedo7 was driven by the need to focus on core brands and improve the company's financial performance.

Grayston cited lower consumer demand and ongoing challenges to Torpedo7's performance as key factors.

The sale is anticipated to result in a non-cash, pre-tax accounting write-down of $55m to $65m in the FY24 half-year income statement.

Tahua Partners expressed delight in welcoming Torpedo7 into their business, highlighting its complementarity to their family of brands.

The Warehouse Group will provide further updates to the NZX after the transaction is completed.