Earlier this year, Evans was trespassed from her Takapuna premises by her landlord over outstanding rent.
Little and Friday was placed into liquidation on June 27, with the Official Assignee appointed liquidator by the High Court.
According to the first liquidator’s report, Little and Friday owes Inland Revenue $639,389.19.
Unsecured creditors, including ASB Bank, are owed $763,391.76.
The Official Assignee’s liquidator’s report said attempts to contact Evans had so far been unsuccessful.
“The cause of liquidation appears to relate to a failure to account for tax obligations. The liquidator has made attempts to contact the director, Kim Evans, but to date has received no response to any correspondence …
“The liquidator will seek to interview the director and obtain the company’s records, including a completed statement of affairs, to assess the company’s assets and liabilities.”
The liquidator expected its investigations to be completed with 12 months.
Evans is the sole director and shareholder of Little and Friday, according to Companies Office records.
The Insolvency and Trustee Service (ITS), or Official Assignee, acts as the court’s default liquidator when no other firms take on an appointment.
The ITS has experienced a significant jump in its workload as Inland Revenue ramps up its debt enforcement.
The tax agency accounted for 70% of all winding-up applications in May and June, according to insolvency specialist firm McDonald Vague.
The hospitality sector has faced significant challenges in recent years, in part due to reduced turnover and rising costs resulting from Covid-19 lockdowns and recession.
Last month, Auckland cafe Kind closed its doors, citing spiralling costs and excessive rent. The cafe was a favourite of Dame Jacinda Ardern, who inspired the name.
Recent Restaurant Association data showed total industry sales for the first quarter of the year were flat, rising just 1% compared to the same period last year.
Restaurant Association chief executive Marisa Bidois said the summer trading period was softer than expected for many operators.
“Long-standing challenges like high fixed costs, wage pressure and staff shortages continue to weigh heavily.
“While inflation may be easing on paper, our members are still feeling significant cost strain on the ground.”
Cameron Smith is an Auckland-based business reporter. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.
