NEW Zealand real estate and dairy specialist, PGG Wrightson today closed its Australia real estate and livestock divisions.
In a letter to customers today, PGG Wrightson Victoria and Southern NSW real estate manager Andrew Gilmour said the decision was made “on the back of a very ordinary economic situation for the parent company in New Zealand”.
“They (PGG Wrightson Ltd) felt that they needed all their resources to work the NZ based business and as the Australia business was classified as ‘non core’, we also took the hit,” Mr Gilmour said.
“This was also on top of 90 people leaving and seven offices being closed in NZ prior to Xmas with more being put off as we speak.”
He said the decision had been made in mid-January and was effective immediately.
PGG Wrightson Ltd today confirmed to The Weekly Times that its Australian livestock and real estate offices had been closed.
“Given current market conditions and an adverse outlook, the decision has been made to close the Tullamarine based offices,” the company said.
“Existing commitments to clients will be honoured and arrangements made, as required, to transition clients to other service providers.
“The decision to exit the real estate and livestock businesses in Australia has no impact on PGG Wrightson Seeds, which will continue to operate.
“The decision also has no impact on the New Zealand real estate and livestock businesses.”
Late last month, the company announced that it would close its Australian offices, set up mainly to aid investment in the local dairy industry from across the Tasman.
Mr Gilmour said by telephone today the company had been working for the past three weeks to find alternative employment for its 39 staff across four locations in Victoria and NSW, with most staff moving to other employers.
He said while the PGG Wrightson real estate team had been disbanded, he and two colleagues, real estate sales manager for Victoria and Southern NSW, Neil Butler, and lifestyle/rural real estate specialist, Daniel Aarons, had "agreed in principle to take on a statewide rural real estate franchise for one of the major Australian franchisors”.
Mr Gilmore said PGG Wrightson’s Australian livestock team was also in final negotiations with “another group and this arrangement should be finalized in the next week or so”.
In his letter he thanked clients for their support.
The global financial crisis and the fallout from a failed merger with Silver Fern Farms last year have impacted PGG Wrightson, with the company's shares tumbling 16 per cent today on the New Zealand Stock Exchange.
The company’s board yesterday made a formal offer of mediation and $10 million to Silver Fern Farms over claims arising from the uncompleted deal. In a statement, PGG Wrightson said it was not aware of the “quantum of damages sought by SFF”.
