“For some time, the company had been experiencing increased costs across its supply chain including the costs of attracting and retaining staff,” the liquidator said.
“This general inflationary environment significantly impacted the company’s profitability and ultimately compelled the director to terminate the lease and sell the realisable assets of the company.”
Lupino traded from Mission Bay’s Promenade.
However, it also had stiff competition on the Italian food front, with Tonnino Pizzeria, Portofino and Mamma Mia Restaurant all within walking distance on the Promenade.
At the time of its liquidation, Food Lab Ltd owed $103,000 in taxes.
A further $29,000 was owed under accounts payable (or unpaid bills) along with a $16,000 business government loan.
The company had assets of $131,000.
Creditors include Inland Revenue, DB Breweries Ltd, Alcohol Licensing Ltd, Nova Energy Ltd, Ozone Refrigeration and Air Ltd and The Produce Company Ltd.
“The prospect of a distribution to unsecured creditors will be dependent upon the liquidator’s investigation into the affairs of the company,” the report said.
Eathorne said he expected the liquidation to be completed within the next six months.
The hospitality industry has been hit hard this year as consumers cut back on their spending.
The Restaurant Association’s Hospitality Dashboard, covering the second quarter of 2024, found 76% of surveyed members reported worse or significantly worse profitability compared with a year ago.
More than half (52%) said a decrease in foot traffic was their primary concern.
According to Centrix data, 212 hospitality companies were placed into liquidation in the 12 months to September, up from 158 for the same period last year.
Denning has been approached for comment.
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.
