A long-standing Canterbury wholesale plant business which employed 28 staff has been placed into liquidation by shareholder resolution.
In their initial report to creditors and shareholders of Headford Propagators, liquidators Trevor and Emma Laing said the reasons cited included a recent significant reduction in turnover — estimated at more than $400,000 in the last two months — reduced plant sales, loss of regional and local authority sales, transport rate competition and a significant increase in costs.
The business, near Morven, has been supplying plants to the wholesale market since 1994. The majority owners are Grant Hayman, who is also chief executive, and his wife, Robynne.
Waimate Mayor Craig Rowley said it was very disappointing and he felt for both the Haymans and the other families affected. Times were tough like everywhere else.
"I hate to see any business in the district go down that sort of route," he said.
The company operated a nursery involved in large-scale propagation of plants from seeds and cuttings for the wholesale market. It also provided a freight service to deliver plants, trees and general freight as well as providing engineering services.
The liquidators had only recently been appointed and their knowledge at this stage was limited. It appeared the director (Mr Hayman) and shareholders had sought appropriate professional advice and taken proactive action which, to some extent, had limited the effects of the company’s financial situation, the report said.
Assets comprised commercial freight vehicles, including large truck and trailer units, and specialised machinery and equipment used in the engineering workshop and in the nursery operation. There was also a significant amount of plant inventory at varying stages of growth.
There were 24 registrations recorded on the Personal Property and Securities Register. The liquidators were aware of referential employee entitlements outstanding relating to wages and holiday pay entitlements, which was expected to be significant.
The liquidators had also been advised the company has Inland Revenue Department liabilities. Initial inquiries indicated the company had substantial inventory available for realisation and those funds, after costs of sale had been deducted, would be applied to preferential debt.
At this stage, the liquidators were aware of 93 unsecured creditors.
