Industry rumours circulating that produce distribution specialist, Brenics Transport Limited is in receivership are unfounded says director Mario Di Leva.
Di Leva tells DIESELtalk that he still owns Brenics Transport Limited, but that the company will be wound down. Di Leva is listed as the sole director on the Companies Office register.
However, Brenics Transport Limited has ceased operations and closed, with a significant restructuring that sees two separately owned companies under the Brenics name, only one of which will trade.
Brenics Limited was formed in May by former Brenics Transport founders and owners, Christchurch-based Gary and Barbara Johnstone, who are listed as directors.
The Johnstones are believed to have bought key Brenics assets, including a dozen trucks.
The Johnstones previously sold the company to Di Leva, a Nelson-based transport man, in September 2012. Johnstone has been able to retain some of the original Nelson staff and hopes to do the same at the Christchurch and Oamaru centres.
While there have been job losses, the widely reported media figure of all 85 staff are off the mark, according to Di Leva.
“Of the 85 jobs that were under threat as a result of the ceasing of operations and subsequent restructure, approximately 60 people have found jobs within the industry, some with the ‘new’ Brenics operation and many with other transport companies, because they are high quality and experienced people,” says Di Leva.
In a previous statement, Di Leva sais that the original closure of the business was due to “continuing industry cost pressures, and that it has been a difficult time for all Brenics Transport people.”
Di Leva, whose family has interests in leading produce marketing co-operative MG Marketing, says that “all Brenics customers have had to go to market to seek other transport providers.”
Despite Di Leva buying the Brenics business last September, industry rumours were circulating for some time prior that Brenics was in financial difficulties, an industry insider told DIESELtalk. Matters reached crisis-point in May.
Gary Johnston was reported as saying that while he held “strong views and [is] disappointed” over what has happened following the sale to Di Leva last September, he would prefer to keep those views to himself.
Di Leva tells DIESELtalk that Gary and Barbara Johnstone’s Brenics Limited will operate the South Island business, and that North Island operations have ceased.
Since its 1996 formation, Brenics has carved out a good reputation in fresh produce cartage, at one stage having an estimated 80% market share between Nelson and Invercargill.
