Milk Kitchen: Hastings beverage manufacturing facility in liquidation owing $2.8m, staff let go

Milk Kitchen's manufacturing plant in Whakatu, Hastings. Photo / Google Maps

A Hastings contract beverage manufacturing facility has suspended production and is in liquidation owing more than $2.8 million.

The Herald understands the majority of staff have been let go.

Milk Kitchen Limited, which owns the manufacturing site in Whakatu, was put in liquidation on November 14.

Heath Gair of Palliser Insolvency Limited was appointed liquidator of the company.

Gair told the Herald production is currently suspended while a buyer is sought for the business and is able to commence again in short order.

He said unfortunately the staff have been let go, with some still assisting the liquidator in the realisation process.

Gair said he hoped that a sale would enable staff to be re-employed.

Milk Kitchen was contracted to manufacture a range of drinks for both the domestic and international markets, including juices, Ultra-High Temperature (UHT) and flavoured milks, plant-based milks, oat milk, protein drinks and pet milk.

The first liquidator’s report explained why the company ceased trading.

“Pre-Covid-19, the company invested significantly to cater for expansion of a pet milk export opportunity into China. Owing to the pandemic, demand for this trade fell away,” the report said.

“Since then, the company invested in and entered into domestic oat milk manufacturing. However, it was unable to generate sufficient cashflow to re-establish its market position and to restore the viability of the business. As a result, the director elected to cease trading.”

Neil Geoffrey McGarva is the sole director of Milk Kitchen Limited, Companies Office records show.

The Herald has approached Milk Kitchen for comment.

According to the liquidator’s report, BNZ and The Homegrown Juice Company, who are secured creditors, are owed $440,000 and $272,000 respectively.

Meanwhile, employees are owed $60,000 and Inland Revenue is owed $100,000.

Trade creditors are owed $1 million and a further $940,000 is outstanding to related entities.

Creditors include BNZ, ACC, Fonterra, Fedex, Genesis Energy, Meridian Energy, the Ministry Of Primary Industries, 3M New Zealand, Officemax and PBT Express Freight Limited.

Accolade Packaging, Bin Hire, Eurofin Food Analytics NZ, Flick Anticimex, Hygiene Technologies, Nova Energy, Royal Wolf Trading, Tetra Pak and Tumu Timbers are also listed as creditors.

Gair told the Herald he anticipated a sale in the short term which would see the creditors repaid.

The liquidator’s report withheld a dollar value for the company’s plant and equipment for commercial reasons. But assets comprise a broad range of specialised plant, equipment and associated infrastructure for the manufacture of a suite of beverage products, it said.

“At this stage, the company’s customers are keen to see production resume at the Whakatu site,” the report said.

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.