The company that operates the Nando's fast food chain in New Zealand has gone into liquidation.
Liquidators Rogers Reidy have been appointed to Auckland-based Shivram, which holds the master franchise for the more than 30-store restaurant network in this country, according to the Companies Office.
Shivram went into receivership on November 29 - the same day the Business Herald revealed the company was copping flak from a number of disgruntled current and former franchisees.
They said a lack of national marketing was stifling the chain's growth and that several franchisees were owed substantial sums of money on loans they provided to the franchisor.
AdvertisementAdvertise with NZME.
Nando's stores in New Zealand, which are independently owned, are not in receivership and continuing to operate as normal.
In the first receivers' report, released last month, Kare Johnstone of McGrathNicol said: "A number of offers to acquire the business have been received and the receivers are working to conclude the sales process ... On completion of the sale process, the business and operations of the company will be transferred to the successful purchaser."
Johnstone said that in the lead up to the receivership Shivram had defaulted on royalty payments due to the master franchisor for the region - Nando's Australia - and had been issued with a breach notice under its franchise agreement.
The company owed $1.6 million to Heartland Bank at the time of the receivers' appointment and interest was continuing to accrue on that amount, she said.
In December Shivram's sole director, Shailen Ramjee, said he and Heartland had agreed on the receivership, which would "protect the assets so that everyone can be paid" and avoid the franchise agreement being terminated by Nando's Australia.