Trev Terry Marine creditors include BNZ, Wells Fargo - boat company owes $16.6m

The Napier site of Trev Terry Marine, which is trading on in receivership in the hope a buyer will be found. The Taupō-based company bought Napier firm Firman Marine in late 2022. Photo / Paul Taylor

A family-owned boat business placed in receivership owes $16.58 million to creditors, including two major banks and numerous marine equipment suppliers.

Taupō-based Trev Terry Marine went into receivership on February 23, with Neale Jackson and Natalie Burrett of Calibre Partners appointed.

They continue to trade the business, which at the time of receivership had 67 staff and branches in Taupō and nearby Kinloch, Tūrangi, Napier, Invercargill and Wānaka.

Their first receivership report identifies secured creditors to be owed $14.29m and trade creditors $1.99m.

The Bank of New Zealand, which petitioned the receivership, is owed $5.5m, the report noted.

International bank Wells Fargo is also listed among the secured creditors.

Staff preferential claims were estimated at $299,700, with $84,835 having been paid to employees during the period of receivership. Inland Revenue had not yet submitted a claim but was expected to, the receivers said.

Founded in 1990, Trev Terry traded as a dealer of new and used boats in Taupō and became a well-known brand as it expanded to Tūrangi and Kinloch.

Through 2021 and 2022 the company became more aggressive, acquiring dealerships in Napier, Wānaka and Invercargill while also expanding its service centre and retail offering in Taupō.

The receivers highlighted three reasons the company faced financial difficulty:

• Challenging trading conditions in the boating and marine market
• Issues integrating the acquisitions into existing operations
• High levels of debt combined with rising interest rates.

The company was placed in receivership after defaulting on its loan facilities.

Jackson and Burrett said they had begun a sale process.

“Due to the ongoing sale process for the business and assets, we are unable to disclose information relating to the assets as this could prejudice the process,” they said.

Burrett last month said some approaches to buy the company had already been made.

“We have had some interest already. There’s some contacts we’re aware of and also we’ll be running a publicity campaign.”

She said it was a difficult time for director Brock Terry and others in the company.

“He’s working with us. It’s a tough time for him and all the staff.”

Trev Terry sells boats including Buccaneer, Stabicraft, Haines Hunter, Fi-Glass and Regal models.

Wānaka branch manager Hayden Vaughan told the Otago Daily Times the receivership was a shock.

He said people selling boats and other luxury items benefited from a bubble during Covid but that had long since burst and many firms were now facing a “massive downturn”.

Data from Stats NZ showed retail sales in the December quarter nationwide were down 1.9 per cent on the September quarter.

Imports of vehicles, mechanical machinery and equipment in the December 2023 quarter were well down on the last quarter of 2022.

Duncan Bridgeman is managing editor of NZME Business, including the Business Herald and BusinessDesk.