The financial affairs of the former company at the centre of iconic business Maketu Pies is revealed in a new report. Sandra Conchie reports.
The former company behind Maketū Pies owes more than $2 million to the Bank of New Zealand and other creditors, according to the first receivers' report.
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RG & KM Wilson Limited, trading as Maketū Pies, was placed in receivership at the end of September at the request of directors due to the company's "critical financial position".
Previously owned by husband and wife Grant and Karen Wilson, the business on Little Waihi Rd, had operated in Maketū for about 36 years.
Joint receivers Kenneth Peter Brown and Thomas Lee Rodewald, from BDO Tauranga, were appointed on September 27.
Their first report to the Companies Office shows that at that date RG & KM Wilson Ltd owed a total of $2,098,172.20 to Bank of New Zealand and other creditors.
This included $176,772.33 to employees, made up of $8967.39 in wages, $142,743.55 holiday pay, time in lieu claims of $2065.59, and $22,985.80 in redundancy claims.
Inland Revenue has also filed a preferential claim for $289,037.72, which covered amounts owed as at September 27, including $110,143 worth of GST.
The Bank of New Zealand, as the secured creditor, was also owed $1,073,502.25 at the commencement of the receivership.
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Rodewald said the bank was also separately collating a ledger of the company's debtors, which should reduce this amount.
There were just over 50 unsecured creditors known to date owed $558,860, he said.
"Due to the secured creditor claims, there are unlikely to be any funds available to return to the company to distribute to unsecured creditors, or to a liquidator at the conclusion of the receivership," Rodewald said.
The estimated total deficit (subject to the cost of the receivership) after taking into account secured, preferential and unsecured creditors stands at $1,728,411, the report revealed.
Rodewald said no in-depth analysis had been undertaken into what led to RG & KM Wilson Ltd's critical financial position prior to receivership.
"I prefer not to comment on the financial state of the company's affairs prior to our involvement," he said.
Maketū Pies was sold as a going concern last month.
The receivers' report showed that the estimated value of the company's assets at the time of the receivers' appointment was $637,587, including $550,000 of plant and equipment.
Maketū Foods Ltd, a commercial subsidiary of Te Arawa Lakes Trust, took over the lease of the property, and all fixtures, fittings and assets on November 12.
The receivers and manager's summary of receipts and payments as at November 28, records the value of the sale at $600,000 and $120,000 for the sale of stock.
Commercial manager for Te Arawa Lakes Trust, Cassandra Crowley confirmed Maketu Pies workers were offered employment contracts.
Crowley said 37 people were working for the new business, also trading as Maketu Pies, including a staff member who has returned from maternity leave.
Crowley would not disclose how many were full-time versus part-time roles citing privacy.
"We are really excited about the future and we're looking forward to the opportunity to expand the business," she said.
"We are delighted by the influx of awesome support we have had from right across the country and from the people of Maketu," she said.
Former company owners Grant and Karen Wilson yesterday told the Bay of Plenty Times they were "devastated".
The receivers' next report is due in six months' time.