The Woodward Group, a holding company used to trade the business, was placed in liquidation in August, 2023, owing creditors more than $6.8 million.
The pre-made food manufacturer and retailer — which had an outlet at Dunedin Hospital — was the brainchild of the company’s directors, Andrea Gibson Scarlett and her husband Shayne Scarlett, who started the business in Wellington in 1999.
It had 17 stores with about 110 staff and also sold pre-made meal packs to more than 60 supermarkets and had a fledgling motel and hotel trade.
In his latest six-monthly report, liquidator Mohammed Jan, of Liquidation Management, said he had determined the company traded while insolvent.
The directors’ conduct had been assessed, including decision-making, record-keeping, use of company funds and compliance with statutory duties. Further investigations were planned where indicators of insolvent trading or breaches of duty were identified.
He was continuing to analyse the company’s financial records in detail and was constructing the shareholder’s current account.
That involved a comprehensive review of bank statements, accounting records, and supporting documentation to determine any amounts owing to or from the shareholder.
He was also investigating the company’s business transactions to identify any that might be voidable under the Companies Act 1993.
That included looking at payments made to creditors and related parties prior to the liquidation. If any transactions identified met the criteria for clawback, he would take action to recover those funds.
He had completed the sale of all the company’s assets and stock, although payment for the sale of two vehicles was still outstanding.
It was not possible to provide an estimated date for the completion of the liquidation, the report said. — Allied Media
