From Matangi Tonga Magazine Vol. 15, no. 1, March 2000.

The last of the big foreign-owned island traders in Tonga, Morris Hedstrom Tonga Ltd., ended its operation in Tonga when it was bought out by a local company recently.

The new owner, Yarnton Investment Corporation Ltd., has renamed its stores ‘Molisi Tonga’.

Dr Feleti Sevele, a local businessman, and the major shareholder in YIC, said that toward the end of last year they moved in and bought the 95.1% shares of MBf Carpenter in the company at a value which, “exceeded $2 million”. The balance of the shares is still held by the Tonga Development Bank and about 100 minor local shareholders.

Feleti said that the purchase included the hardware division of MH, the building, stock and the property, and a liquor outlet. With the supermarket in central Nuku’alofa, Feleti said they had secured a long-term lease of the building and the property from a local company, which he did not want to name.

Fred admitted that MH had been losing money, “it made a little profit in 1998, but it has been losing money since.” But Feleti believed that with a better service, quality goods and by offering lower prices then they should be able to put the supermarket back on its feet.

Old traders

In October 1993, the Rowena Real Estate, a company in which Feleti was a major shareholder bought the former MH property at the intersection of Hala Lelue and Hala Salote, and then sub-leased the property to the ANZ Bank. In a rapid turn of events MH then bought out its major retailing competitor in Nuku’alofa, Burns Philp, and sold its stores in Vava’u and Ha’apai to the Tonga Co-operative Federation.

Feleti is also the only local shareholder in MC International, a wholesale delivery operation with a small retail outlet. He did not think there would be a clash of business interests between the two companies.