Methven Ltd. (MVN), a New Zealand distributor of taps and showerheads, fell the most in more than six years in Wellington trading after its largest customer in the U.K. moved to appoint external managers.
Crewe-based Focus (DIY) Ltd. is filing a notice of intention to appoint administrators and owes Methven N$1.5 million ($1.2 million), the Auckland-based company said in a statement to the stock exchange. The stock fell 10 percent, the biggest slump since December 2004.
Methven is unable to quantify the full effect of the Focus situation as there are many implications to consider regarding retention of title agreement, inventory provisions, impairment of U.K. customer relations and other operating matters, it said. Focus is appointing administrators to protect the interests of creditors after it defaulted on a senior credit facility, according to a statement on the company’s website.
Methven fell 16 cents to NZ$1.40 at 2 p.m. in Wellington trading.
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