Related franchise companies that owned stores in the Queenstown CBD, Frankton’s Five Mile and Wānaka were placed in liquidation last week.
According to liquidator Brenton Hunt’s first reports on the Frankton and Wānaka company voluntary liquidations, each company “had been struggling with working capital for some time”.
“Sales were not enough to meet all creditors.
“Director [Anton Geoffrey Cuthbert, of Wānaka] decided to close the business and handed the lease back.”
The estimated shortfall to creditors from the Five Mile closure was $288,000 — $18,000 in staff holiday pay, $200,000 owed to Inland Revenue in GST and PAYE and $70,000 owed to unsecured creditors.
For the Wānaka liquidation the estimated shortfall was $490,000 — $40,000 in staff holiday pay, $300,000 owed to Inland Revenue in GST and PAYE, and $150,000 owed to unsecured creditors.
In both reports, Mr Hunt said it was “not possible to provide a definitive statement as to whether sufficient assets will be realised for the purposes of making payment to any class of creditor at this stage but it is looking unlikely”. — Allied Media
