Stirling Sports at the Palms Shopping Mall is one of two Christchurch locations owned by a company which has gone into liquidation.
Stirling Sports at the Palms Shopping Mall is one of two Christchurch locations owned by a company which has gone into liquidation.
The company behind two Christchurch Stirling Sports stores is in liquidation owing nearly $800,000, its director blaming the challenging economic environment for drying up sales.
Hamleigh Holdings, which owns the franchise for Stirling Sports The Palms and Stirling Sports Northlands, was placed into liquidation on October 28 withBrenton Hunt of Insolvency Matters appointed liquidator.
The business’ sole director Simon Leigh told Hunt the ongoing economic environment had “significantly impacted sales and cash flow”, and that rising operating expenses and increasing supplier and landlord costs made it no longer viable to continue operating.
According to Hunt, Leigh had been attempting to sell the business for the last 12 months but was unsuccessful.
The 200sq m Northlands store is currently listed on Trade Me as a “franchise opportunity” with an asking price of $40,000, although when including the Stirling Sports joining fee, territory fee, stock and store fitout, this rises to $270,000.
There are currently eight Stirling Sport stores up for sale.
The Stirling Sports Northlands store is up for sale on Trade Me.
Hamleigh Holdings’ total estimated shortfall to creditors amounts to $760,000.
According to Hunt, there are several security interests registered against the business, including Westpac NZ, Nike New Zealand, Adidas NZ, Brand Collective, Liquid Brands and Brittain Wynyard & Co (a sports and lifestyle products distributor).
Preferential creditor amounts include an estimated $15,000 owed in staff wages and holiday pay, and a further $35,000 owed in GST and PAYE to Inland Revenue.
Unsecured creditors are owed the largest amount at an estimated $650,000, with listed unsecured creditors including the Accident Compensation Corporation (ACC), Kiwi Property Group, Dynasty Sport, and the wider Stirling Sports entity.
Hunt is estimating that no funds will be available to these creditors subject to further verification.
“It is also not possible to provide a definitive statement as to whether sufficient assets will be realised for the purposes of making payment to any class of creditor at this stage but it is looking unlikely,” Hunt said.
The Herald has contacted Stirling Sports for comment.
Stirling Sports opened its first store in NZ in 1964, and has 53 stores nationwide.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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