The jobs of about 280 staff are in peril after a pest control company was put into receivership yesterday.
Target Pest Enterprises Ltd was established in Christchurch by Environment Canterbury in 1999 to manage pests in the region, and grew to operate nationwide. However, it has struggled financially,
with a projected loss for the current year increasing to over $2 million.
About six head office staff were made redundant yesterday and the rest of the 280 staff and contractors must wait to see if the company can continue to trade.
The receivers, Stephen Tubbs and Shaun Adams of BDO Spicers, are looking for a buyer and hope to provide more information to anxious staff by the end of this week. "They are naturally upset, and while there's no easy way to tell staff exactly what a receivership means, they need to know as it obviously affects them and their families," Mr Tubbs said.
Target Pest chairman Ray Polson said the company was doing its best for the staff in the circumstances.
"This is a very difficult time for these loyal and hard-working people, and for them I am sorry that the company was not able to carry on business," Mr Polson said.
"Given the expertise and knowledge of the staff however, I am confident that a number can find employment in the industry and elsewhere."
Mr Polson said it became apparent after his appointment as chairman in April that the company was in far worse financial shape than he realised.
"During the past fortnight, the company's position deteriorated to the extent that I had to advise Target Pests bankers and shareholders the company was no longer able to carry on business."
A "number of parties" were interested in purchasing some of the company's operating divisions.
"I will be working with the receivers to try and achieve the most positive outcome available in the circumstances."
Environment Canterbury, the sole shareholder of Target Pest, had lost confidence in the company's ability to meet its business targets.
"The company had asked the council to make cash available so that it could keep operating, but the council has decided that such an injection of capital was not in the best interests of ratepayers," said Environment Canterbury chairman Sir Kerry Burke.
