ASX-listed Blue Chip Financial Solutions has moved to de-risk itself through franchising its New Zealand operations in a bid to contain legacy issues and turn around its poor performance.
The property financier and investment company called a trading halt on its shares last Friday pending an announcement over the restructure of its New Zealand business.
This week Blue Chip announced it would be “simplifying” its business through the adoption of a franchise model in New Zealand.
In a statement to the exchange, the company said the change would allow it to tap into New Zealand profits while steering clear of overheads, which will now come under the franchise.
The new franchise owners include two former senior managers with Blue Chip, Rik Flowerday and Neil Bell, as well as the largest New Zealand licensee, Robert Bangerter. Blue Chip founder Mark Bryers, who stepped down from his executive position earlier this year while reducing his shareholding to 18%, will also remain a consultant.