According to the liquidators’ first report, Cafe Cuba owes creditors more than $1.6m.
The majority is owed to Inland Revenue, including $512,202 in GST and $992,367 in employee deductions.
Staff are allegedly owed $24,500 in holiday pay, while $13,612 is owing to unsecured trade creditors.
Creditors include BNZ, ACC, Genesis Energy, Havana Coffee Works and Mercedes-Benz Financial Services New Zealand.
“The liquidators have been advised that the reason for the failure of the company, which led to the appointment of the liquidators, is due to the company having insufficient assets to satisfy its liabilities,” the report said.
Data from Centrix this week shows the hospitality sector is the second-highest contributor to annual liquidation figures as rising operating costs and soft consumer spending bite.
Between July 2017 and July 2018, 297 hospitality businesses were liquidated, representing a 49% increase compared to the previous year.
The Restaurant Association’s recent Remuneration Report, based on data from 13,945 employees, found that wage costs reached an average 40% of revenue for the first time, while food costs typically account for another 28% to 35%.
Over the past couple of months, several popular hospitality businesses have gone into liquidation.
In July, Auckland cafe Kind went into liquidation, citing spiralling costs and excessive rent. The cafe was a favourite of Dame Jacinda Ardern, who inspired the name.
That same month, the NZ franchise of Butlers Chocolate Cafe closed its five stores, owing creditors and staff more than $1m, according to liquidators.
The Chinese restaurant Dragonboat also went into liquidation after 30 years in business, owing $1.4m to creditors and its landlord.
