Job losses at Takitimu Seafoods after $7m loss, Hastings store to shut

The Takitimu Seafoods store in Hastings is set to close on May 8. Photo / Paul Taylor

Hawke's Bay company Takitimu Seafoods has plans to cut its workforce by more than half after losing nearly $7 million mainly from the impact of Covid, its chairman says.

About 45 of the company's 70 employees could lose their jobs under a proposed restructure announced to staff on Wednesday.

It comes after a tough few years operating throughout Covid.

The company has been owned by Ngāti Kahungunu Iwi Inc since 2019, and was formerly known as Hawke's Bay Seafoods.

"Despite our best efforts and mahi, we made a significant loss last year, and this year another loss has been forecast," Takitimu Seafoods Board chairman Ngahiwi Tomoana said.

"We need to make urgent changes to our business to turn this around.

"We have lost nearly $7m which is the culmination of about three years."

Takitimu Seafoods Board chairman Ngahiwi Tomoana made the announcement. Photo / NZME

Under the proposal to downsize its operation, the company plans to outsource the fishing and landing of fish to a third-party, and also to stop exporting for a period.

The Napier shop will continue to supply fresh fish and a variety of seafood and takeaways, under the plans, while the Hastings store will temporarily close on May 8.

"This smaller business model would mean a significant reduction in the number of staff required within Takitimu Seafoods," Tomoana said.

"It is anticipated that staffing would reduce from 70 full-time workers to approximately 25.

"This means that 45 employees could be made redundant if this proposal proceeds."

Over the next week staff will be able to provide feedback on the proposed changes.

Tomoana told Hawke's Bay Today all staff would be able to reapply for roles under the proposal, and those who were successful or unsuccessful would find out at the same time.

He said at that stage, which could be toward the end of May, the iwi would set up an employment resource centre and look to redeploy staff who had lost jobs.

"We are looking at redeployment within our other Kahungunu businesses or with our business partners who are crying out for workers," he said

"We are anticipating that all staff that want to be will be [redeployed]."

He said about 90 per cent of the company's financial problems had stemmed from the impacts of Covid, including restaurants both in New Zealand and Australia locking down during the pandemic and not requiring seafood, and exports being "wiped out".

"During this period of restaurants locking down we just couldn't get rid of product."

He said the company also had debtors who could not repay their debts.

Tomoana said it was tough delivering the news to staff this week.

Takitimu's Hastings store will close temporarily on May 8 after the property was sold at auction earlier this month.

The company has plans to open in a new store in Hastings in the future, but no timeframes have been set.

Following a remarkable 26 years in the position, Tomoana on Tuesday lost his position as chair of Ngāti Kahungunu Iwi Inc.

Bayden Barber, a current councillor on Hastings District Council, will replace him following an election win by almost 500 votes.

Barber said a big priority of his new role would be making Takitimu Seafoods profitable.

"It needs to be a priority.

"We want to see Ngati Kahungunu financially successful and that is what I campaigned on.

"Our assets need to be working hard for us and making money."

He said he could not comment on the business side of things at Takitimu, because he had not seen under the hood, but would focus on helping turn the business around.