Auckland’s Red Beach loses Domino’s Pizza store to liquidation

The Auckland suburb of Red Beach is losing its Domino's Pizza store. Photo / 123RF

A Domino’s Pizza store in Auckland’s Red Beach has closed after going into liquidation.

Liquidators say creditors are unlikely to get any payout.

Adam Botterill and Damien Grant of insolvency and restructuring firm Waterstone were appointed liquidators of Red Pepper Pizza Limited on October 20.

Liquidators said in their first report the company’s sales were insufficient to cover its overheads and expenses.

“We have been advised as of the date of liquidation that the company did not own any assets.”

A statement of affairs lists Inland Revenue as the only creditor, owed $37,000.

The liquidators said directors advised there are no material unsecured creditors, however, they said they are aware there may be other creditor claims against the company.

“The assets of the company (and premises) were leased from Domino’s,” liquidators said.

“Based on the reported assets of the company we do not anticipate a distribution to any class of creditor.”

Companies Office records show Jaspreet Singh Minhas and Kulwinder Singh are directors of Red Pepper Pizza Limited.

Singh owns the majority of the company with a 65% shareholding, while Minhas owns 35% of shares.

According to the Domino’s website, franchisees pay a royalty fee of 7% of gross sales every month and each outlet is required to contribute a maximum of 6% of sales towards national advertising.

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