Rodd & Gunn’s $3.7m loss after Canadian department store collapse

“The loss includes $2.4m of debt losses and $300,000 of fixed assets written down,” the latest accounts said.

The Lodge Bar & Dining, Rodd & Gunn, Commercial Bay. Photo / Alex Burton

However, more revenue was generated in the latest year: $276m, up from $233m in 2024. But the cost of sales also rose from $82m to $180m.

An item, “Hudson Bay asset impairment”, appeared in the 2025 accounts at $2.6m, whereas there was no loss provision for that in 2024.

Operating profit therefore fell from $7.1m to $3.8m and last year’s $376,000 profit turned into the $3.7m loss.

Total equity fell from $23m to $19.6m in the accounts signed by directors Michael and Josh Beagley.

Liabilities rose from $14.6m to $19.8m, with $11.5m borrowed from the ANZ on a flexi facility, $500,000 on a term loan and $650,000 as a business term loan.

Rodd & Gunn’s The Lodge restaurant in Commercial Bay, downtown Auckland. Photo / Babiche Martens

A further $7.1m is borrowed from CIBC as a working capital loan.

Subsidiaries are listed in Australia, the United States, United Kingdom, Canada, Italy, France, Netherlands, Singapore, Hong Kong, Denmark and Mexico.

The last three are listed as newly established entities.

Rodd & Gunn CEO Mike Beagley told the Herald today: “It was a very challenging period but fortunately, we pivoted quickly and opened nine of our own stores in Canada.

“We believed there would be a market void due to Hudson’s Bay departure from the market and that has borne out to be true.”

Rodd & Gunn continued to grow strongly.

Rodd and Gunn CEO Mike Beagley.

“We are on track to exceed $300m in sales this financial year for the first time,” he said of the current 12 months.

Last year, his son Josh Beagley said Rodd & Gunn “is a proud New Zealand business that has built a successful global business of scale”.

“In the last four years, we more than doubled the size of our business and all of this has been achieved within our existing resources.”

Downtown in Auckland, the Commercial Bay store was a world leader, he said.

“Commercial Bay is one of our most successful sites in our global network.”

Pompallier on Ponsonby under construction. Photo / CMP Construction

A new store in Ponsonby, now under construction, would “represent an evolution of our experiential retail concept and complement our Auckland central offering”.

Pompallier on Ponsonby is rising in a corner site at 286-304 Ponsonby Rd, with CMP Construction working for Urban Collective and development director Kelly McEwan.

Plans for The Pompallier on Ponsonby Rd. Photo / Supplied

The Herald’s Kim Knight reviewed The Lodge at Commercial Bay in 2020, asking: “How does a fashion label worn by environmental scientists and the engineering student offspring of high-country farmers pivot to kale?”

There was, thankfully, a dividing wall between the chinos and the chicken, she noted, finding the venue “absolutely nails its customer service”.

Food with that T-shirt? The Lodge at Commercial Bay, a Rodd & Gunn store with dining. Photo / Babiche Martens

The $150m project is near the Jervois Rd/College Hill Rd intersection.

Fearon Hay designed the project, with Paul Brown Architects. Jeff Fearon said most of the heritage building on the Ponsonby Rd/Cowan St corner would be retained and incorporated into the new construction.

CMP Construction began work on the site last year.

It has three street frontages: Ponsonby Rd opposite Renall St, Pompallier Tce and Cowan St.

Pompallier on Ponsonby is:

Five levels of mixed-use development, retaining a Ponsonby Rd heritage facade;Eleven apartments, with deposits taken on three so far;Three shops which are leased, including to Rodd & Gunn;A two-level basement to be built across the site.Commercial offices.

Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.

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