Co-working office space company Digital Nomad in liquidation: Who’s owed money?

The work-from-home trend has been blamed for the demise of Wellington co-working office space company Digital Nomad. Photo / Mark Mitchell

A shift in office staff working from home in the Wellington CBD has been blamed for the demise of co-working office space company Digital Nomad.

Liquidators delivered their first report on the company, which provided fully serviced office spaces to commercial clients at nine sites around the Wellington CBD.

Digital Nomad Limited and three other entities under the Digital Nomad umbrella went into liquidation on September 13.

Digital Nomad Eva Limited, Digital Nomad 330 Lambton Quay Limited and Digital Nomad 76 Willis Street Limited were also put in liquidation on the same day.

Iain Shephard and Jessica Kellow of BDO Wellington were appointed liquidators of the four companies.

Vaughan Wilson is the sole director of all four companies, according to the Companies Office.

The liquidators said the main reason for liquidation was it was becoming too difficult to maintain a sustainable level of tenants and revenue to make the operation profitable.

“The working landscape has been changing in Wellington for the last few years since Covid-19 and the shift to working from home has made it particularly challenging to secure tenants,” the report said.

“The liquidators have initiated discussions with the relevant landlords about how these assets will be dealt with and whether they are willing to consider setting up new leases with the existing tenants.”

Last week the Herald spoke to the building owner, who asked not to be named, of 60 Cuba St and 3 Eva St - where Digital Nomad has spaces - and was told they would be taking over those spaces.

“We’re continuing to run the co-working space,” he said.

He said all tenants would remain the same, as well as staff.

“We believe the set-up has legs with new management.”

The liquidators said it was too early to reliably estimate what funds would be available for preferential and unsecured creditors.

However, it’s likely creditors will face a shortfall of $916,969.

The company owes $159,604 in lease arrears and $40,700 in tenant bonds.

More than $1.6 million was shown as owing to shareholders and other related party advances.

Vaughan Wilson is the sole shareholder of Digital Nomad Limited, Companies Office records show.

General security agreement (GSA) holders are also owed $172,346.

The liquidators’ report says the company has just over $1m in assets available for creditors.

This includes office and equipment worth an estimated $583,762 and a further $489,225 listed under “office fit-out”.

Creditors include ACC, BNZ, 60 Cuba Limited, Canon Finance, Black Pearl Group, Core Logic, Nespresso, Infrastructure Council NZ, Prime Property Limited and Wilson Hurst Property Services.

Vaughan Wilson is also the chief executive and director of Wilson Hurst Property Consultants Wellington Limited, a specialised company dealing with corporates and Government entities and their property needs, according to his LinkedIn profile.

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.