The Auckland Luge ran over budget, but the receivers say it will be open for business this summer. Photo / Martin Sykes
The Auckland Luge ran over budget, but the receivers say it will be open for business this summer. Photo / Martin Sykes
KEY POINTS:
Two more high-profile Auckland businesses are facing financial trouble, as new figures again show a big jump in the number going into liquidation.
Auckland Luge - an adventure leisure facility in Silverdale, north of Auckland - is in receivership and The Fine Wine Delivery Company has gone intovoluntary administration. Both are still trading.
Receivers have been called into retailers Real Groovy and Stereo World in Mt Eden in the past two months.
New Ministry of Economic Development figures recorded 1210 liquidations between July 1 and October 31, up from 880 during the same period last year.
Experts predicted financial strife would increase for businesses because of the weakness in the economy after years of good growth.
BNZ chief economist Tony Alexander said the rise was not surprising given global economic conditions.
"The numbers will get bigger going forward because of the extra weakness that is hitting our economy from offshore."
But Jeff Poole, one of The Fine Wine Delivery Company's directors, said the company was not giving up and he believed it had a good chance of survival.
He said the business, of which he is also a major shareholder, opted to go into voluntary administration after losing money on a Christchurch store opened this year.
"It was a good development proposal and it was purely a victim of these economic times. Even earlier this year, who could see the current economic climate that we're all in now?"
Mr Poole said the Auckland-based "parent business" was well-run and respected, having traded for 11 years with strong support from suppliers, and he was confident it would trade out of voluntary administration quickly.
Meanwhile, Auckland Luge receiver Tim Downes, of Grant Thornton, said pressure came on the owners after the development ran over budget.
He said receivers decided "very quickly" to keep it trading.
"It's an excellent facility and we are going to be in the process now of getting some advertising underway to let people know that it's open for business.
"We are looking forward to a busy three or four months over summer."
Mr Downes said it was planned to ultimately put the luge up for sale.
