In his first liquidator’s reports on the three companies, Reynolds explained why the companies went into liquidation.
Historical cash problems resulting from Covid-19; the cost of ingredients; lower sales as a result of the cost of living crisis; and employee costs, including increases to the minimum wage were all cited as reasons for the three companies going into liquidation.
In the case of Grangers and Marina Cantina, the liquidator’s reports also cited issues with the landlord.
Reynolds said the landlord chose not to renew the lease, instead giving it to another operator, despite there being no default by the company.
As a result, the company was forced to sell its business to the new lessee.
The report said the new lessee was able to purchase the company business on advantageous terms.
This led to a pre-liquidation arrangement the two companies had with Inland Revenue to fall into default.
Meanwhile, The Franklin Limited ceased trading when it sold its business The Franklin to “an arms-length third party” prior to liquidation.
According to the liquidator’s report, the proceeds from the sales of all three businesses did not allow for creditors to be repaid in full.
In the case of all three companies, the sale of the businesses allowed security holders to be paid.
However, the IRD, as the preferential creditor, is owed $541,293 between the three companies.
Unsecured creditors are owed $193,828.
No money is shown as being owed to staff.
Secured creditors include ASB, Silver Chef Rentals, Independent Liquor (NZ), Coca-Cola Amatil (NZ) and Hancocks Wine, Spirit and Beer Merchants.
Also, Bidfood, Toyko Foods, Manaia Breweries, Miller Media, Peregrine Wines, Gilmours, Meridian, Half Moon Bay Marina, Rentokil, Sky Television and Smartly are among the unsecured creditors listed.
A Restaurant Association survey from July indicated 78% of Auckland businesses and 76% nationwide said revenue was down from a year ago.
Lower inflows of tourists compared with pre-pandemic times as well as customers watching their wallets have battered the sector.
Grangers and Marina Cantina to shut
The Herald reported earlier this week that Grangers and Marina Cantina – both neighbours on East Auckland’s Half Moon Bay waterfront – would eventually close to make way for a redevelopment.
The owner, who didn’t wish to be named, said he had been involved in the hospitality industry for about 15 years.
“Grangers and the Marina place will be closed down eventually and a whole new place will be redeveloped,” the new owner said.
The new owner gave no timeframe for when the two locations would close.
“We’ve only just had architects in just last week. The whole process from design to opening up a new brand generally takes six months minimum,” he said.
“It’s going to be completely different from what it is now.”
The new owner told the Herald of how he bought the remaining part of the lease for the two locations from the previous owners.
“This particular one is a unique one because the lease had come to an end on the previous owners, so that’s when I took it over to potentially be a clean site.
“In the end, I negotiated something with the owners and I just bought the remaining part of their lease off them. I gave them some goodwill. And I took over early while I work on the design for the new place.”
Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports. He reports on topics including retail, small business, the workplace and macroeconomics.
