East Coast-based Hikurangi Enterprises begins voluntary liquidation

Hikurangi Enterprises Limited board chairman Panapa Ehau said directors decided to put the company into liquidation. Photo / Hikurangi Enterprises

The directors of a social enterprise founded in Ruatōria have decided to enter voluntary liquidation after nearly a decade of work, which included housing and food distribution.

Hikurangi Enterprises Limited (HEL) directors said a combination of factors had made continued operation unsustainable.

They included: the current tight economic environment and limited resources; the cyclical nature of the building industry; and long project timelines with fixed costs but variable revenue.

Board chairman Panapa Ehau confirmed the directors’ decision to close operations in a statement on Thursday, when liquidation proceedings began.

“We fought hard to keep the doors open to serve our communities, but the mountain to stay solvent has been too high.”

Ehau told the Gisborne Herald that all building projects Hikurangi Enterprises had “on the book” were completed.

“There are no contracted projects left up in the air,” he said.

“What we did as an entity as we went through this process is make sure we had a people-centred approach to it.

“We made sure all the projects that needed completion were completed, we made sure our customers were looked after, our employees were looked after. We had conversations with our suppliers to make sure they were informed about what was going on.”

Ehau said they had been able to navigate a pathway for potential future customers with alternative providers who could deliver on the same “people-centric” and “outcomes-focused” values HEL had as a social enterprise.

According to New Zealand Companies Office documents, liquidators Paul Vlasic and Derek Ah Sam of Rodgers Reidy have been appointed.

Their first report is due to be distributed five working days from March 27, according to Vlasic.

Hikurangi Enterprises was established in 2016 as a charitable company to address the wellbeing of whānau and whenua in the Waiapu heartland on the East Coast.

The social enterprise aimed to foster sustainable economic development, utilising local resources and supporting grassroots innovation.

“Our kaupapa has been dedicated to providing and supporting employment for local whānau, supporting other social ventures and uplifting the community through innovation and enterprise,” Ehau said in the company statement.

“We’ve provided numerous business development training programmes that have empowered whānau throughout Te Tairāwhiti.”

The Hikurangi Enterprises Whare Ora housing project team produced homes at a site off Lytton Rd in Gisborne. Photo / Paul Rickard

HEL’s Whare Ora building programme started in 2020 and delivered over 90 whare to local whānau and businesses.

“Our whare have the hallmark of being intergenerational. We are proud to have provided healthy and affordable housing solutions made by locals for locals,” he said.

Other whānau-centric programmes run by the organisation included timber milling, small business mentoring, food distribution during the Covid-19 pandemic and a weekly vegetable and fruit box.

The board of HEL, in a statement, extended its “deepest gratitude to the whānau, hapū, and wider community for their unwavering support throughout the years”.

“The organisation also acknowledges the invaluable contributions of its philanthropic stakeholders, business partners and supporters who have shared in its vision and mission. Most importantly, acknowledgement is made to its kaimahi [staff] and volunteers who have been the heartbeat of the company.”

Separate companies incubated and subsequently spun out by Hikurangi Enterprises would not be adversely affected by the liquidation, the statement said.

“While this chapter is coming to a close, the legacy of Hikurangi Enterprises will continue through the many initiatives it has nurtured and the impact it has had on economic and social development in Te Tairāwhiti,” Ehau said.

Trust Tairāwhiti supported the organisation last year with a $123,000 grant that allowed it to expand its Lytton Rd site and production for the Whare Ora project.

A Trust Tairāwhiti spokesperson said in a statement HEL “always had the community at its heart”.

“We acknowledge the board for making this difficult decision and closing the doors on their start-up, which has always had the community at its heart,” the spokesperson said.

“Hikurangi Enterprises Limited has been fully transparent with the trust about its recent challenges.”

The statement said Tairāwhiti businesses were experiencing “tough economic conditions” and social enterprises were no exception.

“Although it is disappointing, HEL still achieved meaningful outcomes for the region, particularly for whānau on the East Coast.”