Companies Office records show Muhammad Waseem is the sole director and shareholder of all three companies.
Vehicle Direct operated as a used car dealership on Auckland’s Great South Rd.
According to the liquidator’s report, Vehicle Direct experienced significant financial difficulties in the period leading up to liquidation.
“The contributing factors included an inability to adequately recover costs, liabilities arising from guarantees, and challenging economic conditions,” the report said.
“External influences, increased competition, and rising operating costs further eroded profitability.”
The report said the company faced a lack of sales, excessive overheads – including interest payments – and insufficient working capital to sustain ongoing operations.
“These combined pressures placed unsustainable strain on the company’s cash flow and overall solvency.”
Westpac is owed $3,161,307 across all three companies.
Meanwhile, Vehicle Direct Ltd owes Inland Revenue $427,564 and staff entitlements of $232,761.
Unsecured creditors are owed $764,797.
Auto Trading Ltd operated as a motor vehicle import and wholesale business, with its core activity sourcing vehicles from overseas markets and reselling them in New Zealand.
The report said the company encountered sustained financial difficulties leading up to its liquidation, including operating costs and excessive overheads.
“Ultimately, the company was no longer able to sustain its operations. With mounting liabilities and insufficient revenue to meet obligations, liquidation became unavoidable.”
Auto Trading Ltd owes Inland Revenue $114,824 and unsecured creditors $359,455.
Auto Compliance & Repairs Ltd, previously trading as VD Panel & Paint, operated in the motor vehicle repair industry, providing auto compliance and repair services.
The company owed Inland Revenue $285,537 and staff entitlements of $49,494.
Unsecured creditors are owed $292,140.
The liquidator’s reports said all three companies are party to pending legal proceedings.
Last September, Auckland Vehicles Ltd went into receivership and liquidation owing more than $1m to over 120 creditors.
The company operated five brands, including Auckland Hyundai, Auckland Isuzu, West Auckland Hyundai, West Auckland Isuzu and Renault Auckland.
The following month, another Auckland car dealer, trading as Cars R Us, was placed in liquidation after a secured creditor repossessed its inventory, including more than a half dozen luxury vehicles.
Cameron Smith is an Auckland-based business reporter. He joined the Herald in 2015 and has covered business and sports. He reports on topics such as retail, small business, the workplace and macroeconomics.
