Hamish Fletcher

Hamish Fletcher is a business reporter for the NZ Herald

Failed eatery leaves behind $100k debt

Mandarin Dumpling and Bar. Photo / Sarah Ivey
Mandarin Dumpling and Bar. Photo / Sarah Ivey

A central Auckland restaurant shut down this month by its landlord is likely to leave creditors at least $100,000 out-of-pocket, according to a receiver's report.

The operator of Mandarin Dumpling & Bar, in the basement of the revamped Imperial Buildings between Queen Street and Fort Lane, went into receivership late February after opening last August.

In early 2014, Mandarin's landlord Phillimore Imperial became "concerned at how the business was operating" and decided to place the company in receivership.

The business ceased trading on March 3.

Its landlord has advanced funds to fitout Mandarin's kitchen and is owed $182,000, according to receiver Kim Thompson's first report.

Others also advanced money for the kitchen's fitout, but the receivers do not yet know how much these lenders are owed.

Thompson's receivers report says Mandarin has an estimated $220,000 worth of assets.
Its liabilities are significantly more than this and (including Phillimore Imperial's debt) total at least $320,000, based on the report.

Inland Revenue is owed $44,569 and unsecured creditors - which include architects, breweries, vineyards, and a magazine publisher - are owed $75,394.

Some debts are still to be quantified.

"The receiver is unable to determine at this time whether any funds are likely to be available to preferential or unsecured creditors," the report says.

Mandarin - which specialised in the regional cuisines of Sichuan, Yunnan, Hunan and Xinjiang - had received mixed reviews and offered a number of daily-deal discount vouchers to entice people to dine there.

It boasted a drinks list shaped by "craft beer brewers and boutique winemakers" that helped celebrate a "exploration of China's culinary heartland".

- NZ Herald

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