Premium cocktail maker Black Pineapple placed its catering subsidiary into voluntary liquidation in March. The company was founded by ex-Lion Breweries veteran Frankie Walker.
Premium cocktail maker Black Pineapple placed its catering subsidiary into voluntary liquidation in March. The company was founded by ex-Lion Breweries veteran Frankie Walker.
Black Pineapple’s catering subsidiary owes at least $680,000 to Inland Revenue as liquidators continue their investigation into the premium cocktail maker’s downfall.
But a dispute with the company’s sole shareholder and founder could delay the finalisation of the liquidation.
Black Pineapple Co was placed into voluntary liquidation in Marchby founder and ex-Lion Breweries veteran Frankie Walker through a special shareholder resolution.
At the time, Walker said the business had made the strategic decision to voluntarily liquidate one of its subsidiaries which focused on large-scale event drinks catering.
“Despite our best efforts, the events business faced significant challenges due to Covid-19, [and] the broader economic conditions,” Walker said.
“After careful consultation with the IRD [Inland Revenue Department] and a thorough review of recovery options, we determined that voluntary liquidation was the most responsible course of action.”
Black Pineapple has served hundreds of thousands of cocktails at events throughout New Zealand and more than 18,000 cocktail boxes have been delivered via e-commerce since 2017.
Liquidators Chris McCullagh and Stephen Lawrence, of PKF Corporate Recovery & Insolvency, have released their six-month report into the business’ state of affairs.
The pair identified $30,609 in accounts receivable in March, with $5115.33 collected from trade debtors as of September. A further $17,607.78 in cash assets were recovered, as well as refunds of $567.30 from the company’s suppliers and $5115 from trade debtors.
Prepayments of $7055 were also collected in March, relating to insurance funding owed to Monument Finance.
However, Walker is disputing the liquidators’ claim of an overdrawn current account owned by him valued at $35,044 (according to its book value back in March).
“The shareholder has disputed the claim. The liquidators are currently discussing the nature of the drawings with both the shareholder and the company’s accountant,” the liquidators said in their report.
How much is owed?
The company owes creditors roughly $778,800 according to the book value as of March, with $727,373 estimated to realise as of September.
Breaking that figure down, $34,771.17 is owed to ANZ Bank New Zealand which holds a general security interest over all present and after-acquired personal property of the business.
This relates to an overdraft facility and credit card ($29,192 owed), as well as a business loan of $5579.
The liquidators said it was unlikely any funds would be available for distribution to secured creditors of the company.
As for preferential creditors, Inland Revenue submitted a preferential claim of $270,492.65 in relation to GST and Employer Activities arrears. The liquidators indicated the claim had a book value of $673,392 back in March.
McCullagh and Lawrence said it was unknown at this stage whether any funds would become available for the debt.
The liquidators received a further two claims from unsecured creditors totalling $422,108.52.
This includes a further $416,760 claim from Inland Revenue ($687,253 in total), and another $5349 in claims from trade creditors.
According to the first liquidators’ report, known creditors included the Accident Compensation Corporation (ACC), ANZ Bank, Coca-Cola Amatil (NZ) and Heartland Bank.
Liquidators are still to confirm the amounts of two loans to the business from Monument Finance and a related party, but said they do not expect that any funds will be available for unsecured creditors.
McCullagh and Lawrence said once they had resolved the matter regarding Walker’s current account they would be able to finalise the liquidation, with an estimated completion by December 2025.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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