Eatery, boutique go under

Whangarei's struggling retail and hospitality sectors had two more casualties last month with the liquidation of Tahuna Reef Restaurant at the Whangarei Town Basin and Salt Surf at Okara Shopping Centre.

A third liquidation enters its final stages over the next few days, with CBD business Classics Books & Games scheduled to close on August 25.

Classics liquidator Steve Bennett had allowed the business to continue trading while attempts were made to find a buyer, an option available to liquidators when a business still has potential despite the debts which led to liquidation (although most liquidations result in instant freezing of the operation). Though there was some interest in the unique Classics brand, no buyer emerged.

Tahuna Reef Restaurant & Bar, which occupied a high-profile, doubled-storeyed site in the heart of the Whangarei Town Basin, was owned by Adelaide Meaker.

Ms Meaker grew up in Whangarei, leaving at 17. She trained as a legal executive and had spent her working life in property consultancy management in Auckland before taking over the closed Gybe Restaurant about four years ago.

She changed the name and replaced the fine-dining menu with a more laidback style, marketing the restaurant as a "shorts and jandals" destination for tourists and locals.

Liquidator Chris Horton has started a tender process for the sale of the business. He detailed estimated debt of about $672,000 and 34 creditors and said the business had failed because "the prevailing market conditions of recent years had resulted in a decline in turnover to a point that the company was unable to meet its obligations".

The shareholder (Ms Meaker) had injected substantial funds into the company to assist with operations, he said. Turnover had increased in the past 18 months but "Ms Meaker's financial position was now such that she had had no alternative but to cease trading and appoint a liquidator". DB Breweries, Penguin Wholesalers (Whangarei) and Viaduct Ltd are secured creditors. Employees are due preferential wages and holiday pay totalling $15,545.41. Inland Revenue is owned for PAYE and GST.

Classics Books & Games has been trading in liquidation since April.

The business was founded by well-known Whangarei Calvin Green, who has developed many successful businesses. Ms Ryder bought the business in 2010 and put it into liquidation on April 10 this year. She had been working in Wellington, and the shop was being run by managers at the time of liquidation.

Liquidator Bennett detailed debts totalling $101,763 in his first report, and 80 creditors.

Meanwhile, landlord Carl Johnson is looking for a new tenant for the high-profile site on the Bank St corner of the Civic Arcade, where the shop has traded since 1999. The lease had two years to run but he said "I pretty much have to just wipe that and get on with it".

Surfwear clothing and accessories retail store Salt Surf went into liquidation on July 13. The business was established by Megan Koia and Eden Craig in early 2006. Eden Craig was subsequently bought out, with Aaryn Koia becoming a director and shareholder with Megan Koia. The liquidators are still receiving creditors' claims, meaning the debt level is yet to be established.

Liquidator Roy Horrocks said the company directors had advised that its failure was due to high debt levels combined with continued soft market conditions.

Overview

Steve Bennett, of Steve Bennett Associates of Whangarei:

"We seem to be getting fewer inquiries this year from people who are looking at their options about where to go in their business, and wondering if liquidation is the way to go. I would say contractors are now starting to get more business after coming through some pretty bad times over the past four years. This sector could be on the road to recovery, whereas retail is still very down. We do have quite a large number of shops for a town our size and when times get tough the retail scene gets very competitive. I think it could well still have some challenges ahead in Whangarei. The hospitality industry has also been hard hit but my guess is that closures in this area may be levelling out."