New Zealand retailer, Briscoe Group Limited, said it will defend legal proceedings filed on June 8 by outdoor clothing retailer, Kathmandu Holdings.

Kathmandu has lodged a claim in the New Zealand High Court for the recovery of costs associated with last year’s takeover bid from Briscoes. The company said it is looking to recover the ‘properly incurred significant costs in relation to the takeover bid’ under the New Zealand Takeover Code.

Kathmandu claims it is entitled to recover expenses of NZ$2,672,861.13 and A$446,397.94.

Briscoe made a payment of $637,711.65 on May 25 of this year after an initial request for payment by Kathmandu last November, “without prejudice to its position on what sum Kathmandu is entitled to recover,” the clothing retailer said in a statement.

Briscoes confirmed it had paid Kathmandu $637,711.65, but said the balance of Kathmandu’s claim did not meet the criteria for reimbursement set out in the Takeover Code.

Dame Rosanne Meo, Briscoe Group’s chair, said the disputed amount consisted of fees charged by global investment advisors Goldman Sachs and consulting firm Bain & Company.

Meo said in a statement the fees were unreasonable in both nature and quantum, and Kathmandu had not established they were for work that was necessary to ensure its shareholders were properly informed about Briscoes’ offer.

David Goddard QC will lead Briscoe’s defence team and will be supported by David Cooper, a senior partner at Bell Gully.

Earlier this year, Kathmandu reported a half-year net profit increase of NZ$9.4 million (A$8.38 million), bouncing back from the NZ$1.8 million loss it made in the previous corresponding period. It successfully fended off a takeover bid from the Briscoe Group in 2015. The unsolicited takeover bid was launched when Kathmandu’s share price was down following sluggish sales and profit downgrades.

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