The New Zealand operation had licensing rights from Irish company Butlers Chocolates.
Kellow and Shephard said Butlers Chocolate Cafe had faced a “prolonged period of economic challenges” after Covid-19, particularly in Wellington, where four of its stores operated.
The company also had a store at Sylvia Park in Auckland.
“Weakened consumer confidence and reduced foot traffic have taken a significant toll on sales. Over the past year, inflationary pressure on chocolate, dairy, and coffee supplies further impacted the company’s ability to operate sustainably while maintaining the quality and experience expected by customers.”
Despite its challenges, the company’s directors continued to inject funds into the business, the liquidators said, but trading conditions failed to improve.
According to the liquidators’ report, employees, who are preferential creditors, are owed $45,847 in holiday pay.
Inland Revenue is owed $140,911 in GST and payroll.
Unsecured creditors, including trade creditors are owed $249,949, while $595,822 is outstanding to directors and related party loans.
Kellow and Shephard said it was “too early to reliably estimate what funds, if any, will be available for preferential and unsecured creditors”.
Creditors include BNZ, ACC, 2degrees, Deloitte, Kiwi Property Holdings, One NZ, Powershop and Waste Management.
The company has an estimated $156,527 in inventory and $500,000 in fixed assets, according to a statement of affairs.
Companies Office records show Jason Calcott, Nicholas Dunphy and Mortimer Kelly are directors of the business.
A spokesperson for Butlers Chocolates UC said: “We regret the fact that challenging trading conditions have meant it is no longer possible for our franchise partner in New Zealand to continue to operate.
“We cherish the relationship we have had with them over the last 18 years and wish them all well for the future.”
‘Deeply affected everyone’
The sudden closure of the company’s stores prompted one manager to set up a Givealittle page for affected staff.
Maddie Hazelwood, manager of Butlers Chocolate Cafe Lower Hutt and page creator, claimed staff were left jobless “without any warning”.
“This sudden closure has deeply affected everyone in the team, especially our staff on work visas, who now face the added stress of uncertain immigration status, limited time to find new employment, and no access to government support.”
Hazelwood said some staff were now struggling to cover rent, food, transport and basic essentials, while urgently searching for work.
“Some have families to support, and all of us are doing our best to stay positive despite a very tough situation.”
Just over $1400 had been raised on Givealittle by Monday morning.
Butlers Chocolates was founded in Ireland in 1932, opening its first retail outlet in 1989, according to its website.
The company operates 28 cafes in Ireland and has franchises in the Middle East and South Asia.
Cameron Smith is an Auckland-based business reporter with the Herald live news team. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace, and macro-economics
