BNZ receives 2.85c in the dollar after organic grocer Huckleberry’s demise

Organic grocer Huckleberry which is now in liquidation currently owes more than $1 million to BNZ.

The Bank of New Zealand has received just 2.85 cents in the dollar from the liquidation of organic grocer Huckleberry after asset sales and distributions to preferential creditors.

Huckleberry, which traded as Harvest Wholefoods in Grey Lynn, Auckland, went into liquidation in May 2024 because of tough trading conditions and the aftermath of Covid-19.

It forced the closure of three locations in New Lynn, Glen Innes and Grey Lynn with about 35 staff affected.

In the latest report from liquidators Steven Khov and Kieran Jones of Khov Jones covering the six months to November 30, 2024, more details are revealed about the business’ financial position.

BNZ is understood to be a secured creditor with a general security agreement (GSA) and is owed $1.03 million.

The liquidators have paid BNZ $29,492 from the proceeds of the sale of fixed assets. However, it leaves the bank short of roughly $1m.

Alongside BNZ, a further distribution has been made to other secured creditors representing 100 cents in the dollar to the value of $17,062.

Huckleberry New Lynn was one of three physical locations forced to close as part of the grocers liquidation. Photo / Google

Huckleberry also owes in actual terms $46,986 to Inland Revenue, which has increased from the $24,680 listed back in May.

The 25 to 35 staff employed at the time of liquidation have been paid out 100% of $35,386.09, made up of wages and owed holiday pay.

The business has a current estimated deficit before unsecured creditors of $835,120.

The outlook is grim for unsecured creditors, with $985,950 still owed to trade creditors.

The business also had related party loans estimated in May to have a book value of $800,000, and as of November, the final figure is still to be determined.

No distribution has been made yet to any unsecured creditors.

The final estimated deficit (before costs of liquidation) equates to $1,822,695.

However, following initial distributions and other payments, Huckleberry currently has just $28,273.43 remaining in its balance.

Khov and Jones had not estimated the date of completion, nor if there will be any distribution at this stage.

Promising start

Established in the early 1990s, Huckleberry evolved from a single speciality organic food store to a health and wellness business dedicated to helping Kiwis make “positive, healthful and sustainable lifestyle choices”.

When news of the liquidation broke, Huckleberry director Darren Guo told the Herald he and his business partner had exhausted all options around obtaining additional capital before making the difficult decision to appoint liquidators.

“It’s been a really tough day. It’s heartbreaking,” Guo said.

“We had this vision to revitalise this long-standing business … and it’s very disappointing that it has come to this.”

Khov said that there would be a number of creditors, many of them suppliers that are small businesses.

Guo and business partner Mat Hughes invested in the supermarket brand in late 2021, at which point the company was racking up losses of about $120,000 per month.

In 2022, Huckleberry partnered with Woolworths in a wholesale agreement to offer a wider selection of goods at lower prices to its New Zealand customers.

The deal followed a Commerce Commission investigation into the grocery sector, with recommendations for the big two supermarket chains to sell wholesale goods to smaller competitors.

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.