Twelve staff lose jobs at failed meat business

Former Dynamic Meats employees Tui Allen and Rebbecca Hodges' hopes for $25,000 awarded to them by the Employment Relations Authority for unfair dismissal, are fading after the business' closure. Photo / File

Twelve jobs have been lost at Dynamic Meats in Hastings and Team New Zealand lawyer Russell Green has again distanced himself from a failed meat business in his Hastings building, the third failure in four years.

Dynamic Meats 2005 Ltd failed last year, going into receivership and liquidation. Landlord Mr Green, an America's Cup rules expert, sent associate Gary Ashley to investigate.

"I suggested he go down and have a look and advise us on what we should be doing," Mr Green said. "When he came back he said he would like to take on the business."

A company owned by Mr Green, Russell Green Ltd, became owner of Dynamic Meats 2014 Ltd with Mr Ashley the sole director. Mr Green said he was not involved with Dynamic's management and his company was used for the sake of expediency. Shares were held in trust for Mr Ashley.

Companies Office records show Mr Ashley was sentenced in 2011 to two months' community detention and 175 hours community work for managing a business while prohibited, for being involved in the management of a company while a prohibited director and taking part in the management of a business whilst being an undischarged bankrupt.

Mr Green said he was aware Mr Ashley had been bankrupted but not of his convictions.

"He was doing a job for my accountant and when I was in San Francisco he looked after my property in the Far North."

Mr Ashley was a director of Mr Green's Paewhenua Island gated community development in Mangonui, but his appointment was for a short time "to facilitate the signing of documents". When Mr Ashley took over Dynamic he kept on most staff, promoting Mark O'Regan to the role of manager.

Mr O'Regan said after staff were not paid last month, including himself, he walked off the job about two weeks ago "and they followed".

He was owed about $7500 in wages and decided to leave when it became "impossible to operate". Gas had been shut off and a "last final notice" was received for the electricity account.

"You can't buy products, you can't buy packaging, you can't get anything delivered and there is no gas to cook anything."

The business owed about $750,000 but was not trading while insolvent, he said.

He has since started a pre-cooked meal business, employing two former Dynamic employees.

Mr Green said all his actions were made as landlord. Mr Ashley was given financial assistance to take over Dynamic and caused no concerns until rent payments became irregular at the end of last year.

Mr O'Regan and Mr Green say Mr Ashley is not returning their calls. Mr Ashley has not responded to Hawke's Bay Today.

Mr Green has owned the building since 2010, where in 2011 20 Richmond Meats staff were locked out of their jobs after returning from a two-week vacation ordered by Mr Green, leaving them out of work and hundreds of thousands of dollars out of pocket. A liquidator's report said more than $2 million was owed.

Mr Green said he only became involved with Richmond to protect his ownership of the building, after purchasers of the business failed to settle. Successful business Dynamic Meats 2005 Ltd moved into the site.

Mr Green said he was "so angry" when he heard of Dynamic Meats 2014 Ltd's failure.

"I was burned really badly with Richmond Meats. I have paid off guarantees, I have paid off creditors, I moved on."

As landlord he would "certainly be the biggest creditor" of Dynamic. "We've just changed the locks, I'm waiting for a report and we'll have to find a new tenant."

He said he felt sorry for staff.

"If there's any staff members that are owed money, as landlord I don't have any legal liability, but crumbs, I care about my reputation. I'm not involved in the business but perhaps I should come down and see them, and see what the hell they are owed and whether we can help."

Last year Dynamic Meats was ordered to pay two employees $25,000 in total after they were unfairly dismissed, just weeks after they were hired. Former employee Wanda Jeffers is owed more than $1300 after the company failed to forward pay deductions to third parties.