This follows over one-third of Bremworth shareholders opposing a scheme of arrangement for the listed company’s sale to Floorscape Ltd.
Floorscape is part of NYSE-listed Mohawk Industries and owner of Godfrey Hirst. The proposed buyout was first announced in October last year.
Major Shareholders Block the Buyout
While the High Court approved the scheme in February this year, the Commerce Commission expressed concerns and finally approved the sale last month.
However, Bremworth shareholders, David Ferrier, as well as the Timpson, the Harrison and the Woolf families, have committed to vote against the proposed sale, forcing the company to cease discussions with Floorscape.
Board Defends the Proposed Sale
Bremworth chair Rob Hewett says the board is frustrated with the actions of these shareholders.
He says they have chosen to announce their commitment to vote against the scheme after the final regulatory hurdle was achieved but before an independent adviser’s report was released to shareholders.
“This has taken away genuine choice for Bremworth’s remaining 2,300+ shareholders, including minority holders.
“To date, the opposing shareholders have not offered any alternative plan for the Bremworth business nor details of any alternative acquirer willing to make an offer at or near the level of the Floorscape Scheme.
“The board engaged with Floorscape in good faith and continues to believe that the Scheme was in the best interests of Bremworth shareholders. It is disappointed that shareholders were not given the opportunity to vote on the Scheme with the benefit of all relevant information.”
Bremworth Focuses on Business Recovery
Hewett says the board will continue to execute on its previously stated initiatives aimed at achieving profitable growth and positive cashflows.
Over the past year, Bremworth has implemented and made progress on several initiatives aimed at improving performance, with priorities being cost reset, revenue recovery and capital discipline.
While wool carpet sales in New Zealand and Australia are ahead of last year, overall trading in both markets continues to be challenging.
Construction Slowdown Continues to Weigh on Demand
Hewett says macro-economic headwinds have put pressure on consumer spending, particularly in the construction (new build and renovation) markets, with a flow-on impact on flooring demand.
Bremworth indicated in February that the business was not cash flow positive or profitable in the second half of FY26.
The company will provide further detail when it announces its FY26 preliminary financial results by end-August 2026.
