High profile cafe closes doors

High-profile cafe Zaggers II on The Strand has closed permanently while its sister cafe on Chapel St continues to trade in receivership.

The two cafes, owned by Tauranga couple Wendy and Eddie Treacey, were put into receivership by the owner of the Zaggers II building in April.

The Treaceys initially said they would contest the receivership but later appointed a liquidator.

Liquidator Anthony Harris filed two reports last Friday (the two cafes are owned by two different companies with the same shareholders and directors) in which he called for creditors to contact him with details of their claims.

The reports show $519,000 owed by Franfay Ltd (the company that owns Zaggers II), and a further $560,000 owed by Wenward Ltd (the company that owns Zaggers cafe on Chapel St). Of the money owed by Wenward, $277,000 is owed to the Inland Revenue Department, which has a preferential claim over other creditors.

A large sign painted on to the window of the former Zaggers II cafe says a new business will open in the downstairs space soon.

Meanwhile, Crown and Badger owner Colin Milne has opened a new sports bar called Sideline in the spot where his restaurant Steakout used to be.

He said there were too many restaurants in the area and the Steakout had not been sustainable. "The economy's not helping, lack of carparks are not helping."