Auckland mayor Wayne Brown asked Aucklanders to submit on its annual plan for the chance to win a meal with him at Dragonboat Restaurant - which has now gone into liquidation.
A Chinese restaurant that Auckland Mayor Wayne Brown used for a promotional video has gone into liquidation after 30 years in business, owing $1.4 million to creditors and its landlord.
Dragonboat Restaurant on Auckland’s Elliott St had been operating since June 1994 serving Cantonese cuisine, but the business was placedinto liquidation on July 18.
Grant Reynolds of Reynolds & Associates was appointed liquidator for the business by remaining shareholder and director Guochao Cui.
The business had five other shareholders three days before it was placed into liquidation, including Peter Cui, Wendy Cheng, Pak Hong Leung, Golden Harvest Limited and Dragonboat Jade LP.
In Reynolds’ first report on the business, Cui explained that the effects of Covid-19 on the hospitality industry and poorer economic conditions led to lower revenue for the business.
The business also faced higher trading and compliance costs, before it entered arrears with the landlord.
The first report was unable to detail what assets the business had available for creditors other than a vehicle worth $29,294.67 and property, plant and equipment not subject to securities worth $16,369.
Customers at Auckland's Dragonboat Restaurant were still being served when the Herald visited the restaurant, despite going into liquidation in mid-July.
The liquidator identified two preferential creditors, including employee claims totalling $53,743, as well as Inland Revenue, which is owed GST and PAYE totalling $84,864.
He bought a 4417sq m vacant site at 106 Albert St for $53m in 2012. In 2017, the Overseas Investment Office (OIO) granted Ding consent to build a $350m, five-star Ritz Carlton hotel and 52-storey tower on the site.
With the project yet to begin, a resource consent for the development issued by Auckland Council was due to expire in October 2021.
However, Ding’s planners applied for an eight-year extension just days before the consent was due to lapse, which was signed off by the council and is valid until October 2029.
Brown, the Auckland Mayor, used the restaurant for a promotional video in March in an effort to get Aucklanders to submit feedback on the council’s annual plan.
The video accumulated 50,000 views on Facebook and offered one lucky submitter the chance to win a “Succulent Chinese Meal” courtesy of the mayor.
A spokeswoman for Auckland Council declined to comment on the business’ liquidation, but confirmed that a winner had received a meal (or voucher equivalent) to the value of $150, but not at the Dragonboat Restaurant and instead at the Canton Cafe in Kingsland.
Reynolds said it was unknown whether any dividends would be paid to creditors, nor when the liquidation would be completed.
The Herald visited the location today and confirmed the business was still serving customers.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
