15.07.2012

HireQuip owners insolvent

The owners/parent of New Zealand based rental company HireQuip have been placed into receivership by their funders.

The companies that have gone into Receivership are Pacific Equipment Solutions, PES Finance and Hire Equipment Group, which in turn are owned by private equity company Tasman Capital Partners.

Day to day operations at HireQuip, which claims to be New Zealand’s largest rental company, will not be affected, although it is likely to be sold as a going concern according to a statement from receiver Brendon Gibson of KordaMentha, an insolvency practitioner.

HireQuip director and chief executive Brian Stephen issued a statement assuring staff, customers, landlords and creditors that the receivership would have no effect at all on the HireQuip business. "It is business as usual, with myself and the balance of the senior management team remaining at the helm with the continued agenda of ensuring we deliver best in class service and fleet to our customers” added Stephen.

Gibson also confirmed that HireQuip's financiers are happy to continue to support it until a sale was made and added: "We do not anticipate any need for us to become involved in the businesses themselves."

The receivership comes just four weeks after Tasman managing director and shareholder Rob Nichols said that the company might consider a listing or a bond issue for HireQuip, following a strong pick up in profits this year. HireQuip operates from 37 locations and employs 320 people.