PK Furniture sold, former owner owes $22m

PK Furniture has been bought out of receivership. Photo / Supplied

PK Furniture has been sold and its former owner owes creditors $22 million.

The company which ran the North Island furniture chain went into receivership in May and the business continued to trade while a buyer was sought.

Co-receiver Andrew McKay on Friday released his first report on the company, which is called Greenmark Wholesaler (NZ).

The report says the Greenmark's assets have been sold but does not reveal a sale price for the business. The sale proceeds have not yet been realised, the report said.

PK Furniture is now run by a newly-incorporated firm called Highbury Group, directed by Auckland man Stephen Salmon.

McKay told the Herald that some of PK Furniture's staff would have been taken on by the new owner.

Salmon could not be reached for comment and staff working at one of PK Furniture's stores did not have a number for its head office.

The receivers' report revealed Greenmark had assets with a book value of just under $5m and liabilities of more than $22m.

As at May 15, Inland Revenue was owed $817,000 and Customs $102,000.

Secured creditors were owed $6.1m and unsecured creditors $15.3m.

Employees were owed $621,000 when receivers were appointed but have been paid this amount, the report says.

"The process of realising the company's assets is not yet complete but receivers have determined that there are unlikely to be any funds available for unsecured creditors. There will also be a significant shortfall to the secured creditors," the report said.