In the first liquidator’s report by liquidator Brenton Hunt, the reasons cited were the Covid-19 pandemic and business environment providing many challenges for the business and creating considerable financial hardship for the company and stress for the directors.
Despite concerted efforts made through and after the Covid-19 period, the reality was the financial position of the business was not improving.
The international tourism market had been slow to return, employing drivers had proven extremely difficult and the costs of doing business, including interest charges, had increased dramatically.
The directors, Evan Bloomfield, of Queenstown, and Ralph Davies, of Weston, firmly believed that continuing through the winter would only further deteriorate the financial position of the company and its ability to pay creditors.
Shareholders — Mr Davies holds 50% of shares, while Tuatara Investments holds the other 50% — sought professional advice and the decision was made to liquidate the company.
Inland Revenue PAYE and GST was listed as preferential creditor, estimated at $80,000, while unsecured creditors were estimated at $150,000. Secured creditors were listed as ANZ Bank, Mercedes-Benz Financial Services and Heartland Bank.
The company bank account was in overdraft at liquidation. There was a modest amount of plant equipment to be collected and sold.
There were also a number of vehicles to be collected and sold, some with finance owing on them.
Subject to further verification, the liquidator estimated there would be no funds available to unsecured creditors. However, that would depend on the progress of the liquidation.
It was not practicable to provide an estimated date for the completion of the liquidation, but it would most probably be within 12 months.
It was also not possible to provide a definitive statement as to whether sufficient assets would be realised for the purposes of making payment to any class of creditor at this stage, but it was looking ‘‘fairly likely’’, the report said.
During the Covid-19 lockdown, Headfirst Travel established ToMyDoor, redeploying drivers who would normally be ferrying tourists around New Zealand as personal shoppers.
That was designed for people in lockdown, self-isolation, or for those who did not want to leave home to go to the supermarket or pharmacy.
