Arthur and Debra Wall are pulling out of the confectionery and snack foods business they started in the basement of their Whangarei home 22 years ago.
They built Combined Food Distributors, to a $1.6 million annual turnover, with five permanent and two part-time staff in leased Herekino St premises.
But in the
past couple of years a $400,000 fall in turnover reduced the viability of the business.
"We weren't making money. We got a mentor in to look at the books and when we found we would have to invest large sums to stand a chance of getting back into profit, we decided to pull the plug," Mr Wall said.
He emphasised that Combined Food Distributors was not in liquidation or receivership. There is no bankruptcy. "We've exited to keep our dignity. Our staff, bills, the banks, ACC and the IRD have been paid."
Dignity comes at a cost though. Mr Wall confessed he did not have a plan for the future.
He's still to experience the anxiety of a 61-year-old looking for a job, and has sleepless nights from worry.
He said the main reasons the business had moved out of the black included the withdrawal of 5c coins - crucial when marketing lollies sold mostly to children; increasing employees' annual holidays from three weeks to four; KiwiSaver; a tripling in rent, power and insurance costs; compliance, including thousands of dollars shelled out to meet a supermarket chain's health and safety rules, plus increased competition from Auckland suppliers.
Part of Combined Food Distributors has been sold, and the Walls were at their office yesterday winding up the rest.
Mr Wall believes the emotional pain he has experienced severing ties with the firm and its loyal staff - some with the company for as long as 14 years - would be like a divorce.
But he's lucky there.
He and his wife don't have a mortgage on their home, they have their finances sorted and they are facing their uncertain future very much together.
"She's my rock," Mr Wall said.
