Wellington Combined Taxis in voluntary administration

Wellington Combined Taxis is in voluntary administration as it battles cashflow difficulties. Photo / Hazel Osborne

Wellington Combined Taxis has been placed in voluntary administration to try and work its way out of cashflow difficulties.

Administrators for the company said it could not operate in its current form.

Wellington Combined Taxis, which operates more than 330 taxis in Wellington, continues to trade as normal and all taxis are still on the road.

“The voluntary administration regime is a rehabilitative regime, and the administrators are looking to achieve the best outcome for all stakeholders,” the administrators said in a statement.

“This may include some form of restructuring, refinancing or even a sale of the business.

“In the meantime, it remains business as usual. All employees have retained their jobs, and all vehicles are still on the road.”

Two other related companies, Wellington Combined Properties Ltd and Combined Finance Ltd, were also placed in voluntary administration.

Iain Shephard and Jessica Kellow of BDO Wellington were appointed administrators of the three companies.

David Clyma, Delfin De Guzman, Christopher Finlayson, Garth Fraser, Rajesh Kumar, Asad Qadar are listed as directors of all three companies, according to the Companies Office.

Administrators said the companies were balance sheet solvent.

“In mid-2023 [Wellington Combined Taxis] faced a derivative action from several shareholders which has led to internal disruption and a large drain on cash,” the administrators said.

Wellington Combined Taxis’ fleet is made up of a mixture of owner drivers and lease operators.

Wellington Combined Taxis was formed in 1993 from the combination of several Wellington taxi companies and is today part of the Blue Bubble group – New Zealand’s largest taxi group which operates around 2000 taxis nationwide.

The company received more than $1 million in Covid-19 wage subsidies, according to Work and Income.

The first was $459,686.00 for 70 employees, followed by a Wage Subsidy Extension of $282,952.00 for 64 employees.

The company got a further $66,523.20 for 60 employees through the Resurgence Wage Subsidy before a final $548,536.00 was paid to 70 employees as part of the Wage Subsidy August 2021.