JUCY Group Limited recently announced it has reached an agreement that sees Polar Capital take a majority stake in the purchase of the assets of JUCY Group’s Car and Campervan Rental businesses in New Zealand and Australia.
The interests of David Cushing, a former director of Tourism Holdings Limited, will take a minority stake in the business.
The other businesses JUCY Snooze, JUCY Cruise, JUCY USA, JUCY UK, Your Drive and Lucky Rentals are not included in the new ownership structure.
As a result of border closures across the three countries in which JGL operates, JUCY experienced upwards of 90 per cent reduction in business revenue since March 2020.
These events presented JGL with the most significant challenges to its business since starting the JUCY brand more than 20 years ago and forced the Directors to explore all opportunities, including restructuring the business to reduce its operating costs.
The agreement with New Zealand-based investors Polar Capital and David Cushing has resulted in a new entity being formed.
‘’JUCY is an iconic brand and while the impact of COVID has been devastating on JGL we are very excited about the acquisition and are pleased we are able to play a part in securing the future of JUCY Rentals and retaining the jobs of 150 JUCY Crew," says Polar Capital’s Colin Neal.
As part of the sale process, Grant Graham and Neale Jackson of financial advisory firm Calibre Partners have been appointed as receivers to four entities within JUCY Group – JUCY Group Limited, JUCY Holdings Limited, JUCY Rentals NZ Limited and JUCY By Design Limited.
"The business will continue to trade under its new ownership and the purchaser has agreed to honour holidays booked or credits held with JUCY Rentals," says Neale.
The agreement will see the original founders of the business brothers Dan and Tim Alpe exit JGL. To ensure the JUCY brand story continues, albeit in a different guise, Dan Alpe is taking a new role as CEO of the new entity, while brother Tim Alpe has decided the timing is right to pursue other interests.
As the original founders of the business, brothers Dan and Tim Alpe say: "COVID-19 has had an unprecedented and devastating impact on our business. We moved quickly to reduce costs and hibernate or close parts of the business, however, it became clear that we needed to bring external capital into the business. We have always believed that the JUCY brand is an integral part of the tourism landscape in New Zealand and Australia, and this new entity provided the best opportunity for the JUCY brand to recover from the impact of COVID-19 and move forward."