Denheath Desserts liquidation: Who’s owed money and a possible buyer?

Timaru dessert company Denheath is famous for its custard squares. Photo / Denheath Desserts

Timaru dessert company Denheath, famous for its custard squares, owes creditors more than $650,000, according to a liquidator’s report.

But a buyer could emerge for the dairy food manufacturer, with various parties expressing interest in the business.

Denheath Corporation Limited was tipped into liquidation in August after its second-largest shareholder applied to the High Court at Timaru to liquidate the company in March.

The Official Assignee, who was appointed liquidator, said the reasons given for the company’s liquidation were Covid, insufficient capital, economic conditions, retail compliance costs, export issues and costs.

Their report said the secured creditor confirmed that the liquidator can proceed with the sale of the business.

“Various parties have expressed an interest in purchasing the company’s business ... with further information likely to be provided in our next statutory report.”

ASB is the secured creditor, holding a general security agreement, but no monies owed were provided in the report.

Inland Revenue is owed $141,635.90 and 18 unsecured creditors are owed $517,382.91.

Employee claims were still being determined.

Unsecured creditors include Anchor Milk Canterbury, Law Debt Collection, New Zealand Couriers – Timaru, Meridian Energy and Foodstuffs South Island.

The liquidator didn’t provide an estimate of the company’s assets, which include stock and plant and equipment.

Companies Office records show Donald and Lisa Templeton are directors of the company.

The Templetons and RSM Trust Limited hold 71.48% of shares in the company, while the Estate of the Late Brian James Kenton holds 12.50%.

The name comes from Denheath House, a country café at the old post office in sleepy little Pleasant Point, South Canterbury.

The original owners of the cafe where the squares were sold were Dennis Knight and his potter wife, Heather, hence the name Denheath. Lisa Templeton worked in the Knights’ arts and craft shop in Pleasant Point when she was at secondary school.

The family-owned manufacturer has sold its products in more than 53 Costco outlets in NZ, Australia, Korea and Japan.

The Timaru Herald reported that the company was put up for sale at the end of 2023 as Lisa Templeton was unwell at the time and wanted to spend more time with family.

Denheath also made profiteroles and cheesecakes.

The dairy sector hasn’t been spared in a time of high company liquidations as cost pressures and changing consumer spending habits weigh on margins.

Earlier this month, Blenheim-based boutique dairy company Cranky Goat went into liquidation.

Creditors face an estimated shortfall of $102,413, according to the first liquidator’s report.

In June, plant-based dairy food manufacturer Little Island went into liquidation owing creditors about $2 million.

Nelson-based ice cream producer Appleby Farms snapped up Little Island’s brand and assets the following month, with plans to manufacture all existing ice cream flavours.

Cameron Smith is an Auckland-based business reporter. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.

Raphael Franks is an Auckland-based reporter who covers business, breaking news and local stories from Tāmaki Makaurau. He joined the Herald as a Te Rito cadet in 2022.