August 27, 2013
Sealord sells Argentine albatross
Sealord Group has sold its unprofitable Argentinian subsidiary Yuken to an Argentinian buyer for an undisclosed price.
Chief executive Graham Stuart says it means the company can make a clean exit from South America without any further liabilities or putting Yuken into bankruptcy.
In the two years it has taken to sell the business, Sealord has taken a $10 million charge and operating losses totalling $12 million as an over-valued peso and rampant inflation drove up costs.
It means Sealord has been unable to pay a dividend this year to its shareholders, pan-Māori company Aotearoa Fisheries and Japan’s Nippon Suisan Kaisha.
Mr Stuart says without the dead weight of the Argentine venture Sealord can return to profit.
Copyright © 2013, UMA Broadcasting Ltd