WELLINGTON - Wellington ratepayers are unlikely to recoup the $35,000 owed to the council by a company their mayor, Mark Blumsky, helped set up.
Quay Retailing, which operated three Mischief shoe stores, went into liquidation in March owing more than $270,000.
That sum included $237,684 to the Inland Revenue Department from March1995 until last September, and $35,250 to the Wellington City Council. The money owed to the council is for rent for a council-owned building.
Mr Blumsky resigned last December as a director of the company because of a disagreement over its direction. But he said at the time that he was still likely to be liable for some of its debt.
Liquidator Keith Palmer said last week that it would be a miracle if unsecured creditors, such as the city council, received anything.
The preferential creditor - Inland Revenue - had received a "significant" payment, but Mr Palmer would not say how much.
He also would not say whether Mr Blumsky - who had signed personal guarantees for a $100,000 overdraft and an $80,000 loan for the company, secured against his inner-city apartment - had to pay a share of the tax bill.
It is understood Mr Blumsky was forced to pay more than $50,000. Mr Blumsky was not available for comment.
Quay Retailing operated four shoe shops in Greater Wellington, including a What's Up Doc outlet.
The three Mischief shops were later sold to D and R Holdings. Its directors, Don Wearing and Russell White, were fellow directors with Mr Blumsky of Quay Retailing. - NZPA
