The sale of carpet company Cavalier's Auckland property is in doubt after the buyer failed to settle the deal by the deadline.
Photo: 123rf
The buyer, Kinleith Land and Infrastructure, did not settle the $24 million purchase and leaseback deal as required by last Friday.
No reason has been given, but it now has 12 days to comply, as Cavalier looks at its options including possible legal action.
"There remains continued interest from a number of parties in the Auckland property, and while it is disappointing and inconvenient that this transaction has not settled yet, we are moving ahead with the implementation of our strategy," Cavalier chair George Adams said.
The sale is part of Cavalier's revamp, which includes ditching synthetic carpets and making only wool products.
Adams said the problem with the property's sale would not derail its plans and it was making progress with plans to reorient the company.
Trading for the first quarter of the financial year has been above expectations with revenue up 3 percent, while it has slashed its debt from $14.5m to $1.4m.
"While the future economic environment remains uncertain, our near term outlook has improved," Adams said.