Andrew Hollis rose to prominence with the Fix the Bloody Road campaign for State Highway 2, before being elected a councillor. Photo / Andrew Warner
A gold-trading business owned by former Tauranga councillor Andrew Hollis has been put into liquidation and receivership owing hundreds of thousands of dollars.
Some Guardians of Gold Ltd customers told the Bay of Plenty Times they are owed thousands of dollars worth of cash or precious metals, and have filed police complaints.
Hollis, who was among councillors sacked in 2020 and replaced with commissioners, is the company’s sole director and shareholder.
The Fix the Bloody Road State Highway 2 campaigner was elected to the Tauranga City Council in 2019.
His short term was controversial; he faced calls to resign over a comment supporting burning the Treaty of Waitangi, and was prominent in the internal clashes that led to the Government intervening.
He has since run unsuccessfully in two byelections – the Western Bay of Plenty District Council’s in 2021 and as the New Nation Party candidate for Tauranga MP in 2022.
Guardians of Gold was incorporated last September after taking over the operations of an existing bullion trading business.
The company’s website described it as “your trusted NZ partner for buying, selling and investing in gold and silver bullion”.
It started in the Tauranga CBD and had exchanges in Auckland, Hamilton and Christchurch.
An April blog post said the company had 5000 clients, and described Hollis as a geologist and “The Rock Doctor”.
The company was still posting on social media, encouraging gold sellers and buyers to get in touch, on August 24.
It was placed into voluntary liquidation on August 29 and receivership on September 2.
Paul Manning and Thomas Rodewald of BDO Tauranga have been appointed liquidators.
The liquidators’ first report, on September 5, listed 85 known creditors, most of them individuals.
It said claims by unsecured creditors totalled $385,865 to date, but the actual amount was likely “significantly higher”.
Liquidators understood secured creditor Mayfair Finance Ltd was owed about $250,000.
Preferential creditors included employees and Inland Revenue, estimated to be owed $12,773 and $34,600, respectively.
Liquidators had taken possession of business assets and “gold, silver and jewellery items”, but expected there would not be enough to satisfy all claims.
Preliminary accounting records showed the company had an overdrawn shareholder account balance of $86,750.58, and $26,190 cash in the bank.
The report said the decision was made to place the company into liquidation following concerns about its ongoing viability and ability to meet obligations as they fell due.
“Inquiries into the company’s affairs, including the circumstances leading to its insolvency, are ongoing and will be reported in due course.”
Creditors had until October 17 to make claims.
Adam Botterill and Damien Grant of Waterstone were appointed receivers by Mayfair Finance, and their first report is due on November 9.
The collapse came as the price of gold hit record levels.
Three unsecured creditors told the Bay of Plenty Times they had filed police complaints over their dealings with Hollis shortly before the liquidation.
The three complainants spoke on the condition they were not identified.
One said she was owed $2300 for gold and silver she sold to the company in early July. The payment was due August 20.
She said that after several unsuccessful attempts to contact Hollis by phone, she got an email response.
“I received a feeble excuse from him, saying it’s been a messy week and he promised to make the payment the following week.”
She said she filed a police complaint on August 27.
In her view, the company should not have been trading given its financial state.
“It’s been an emotional rollercoaster, and when other people started posting their own stories of being owed money, it made me very angry.”
She said the company had “left me and a lot of other people who are owed thousands and thousands of dollars out of pocket”.
The second complainant said she was owed $12,850 for four solid gold coins sold in late July. Payment was due on August 20.
She said that two days later, Hollis emailed her saying there had been banking and systems issues and payment would be made the following week.
The complainant claimed the money never came, and she filed a “stolen property” complaint with police on August 27.
She said she found it “ironic” to read comments posted on Hollis’ social media “about having integrity, authenticity and trust”.
A third complainant, who had used the company before, said she bought $4669 of silver from the company in late August, and “less than 48 hours” later found out the company was in liquidation.
She said she had never received the silver, and she filed a police complaint on August 27.
The complainant claimed that when she spoke to Hollis he said did not know his company was going into liquidation.
“I am horrified and disgusted that he sold me the silver despite knowing the impossible financial situation he was in. The stress this is causing me is significant, especially given the rising cost of living.”
A police spokesman said police had received several complaints relating to a business and made initial inquiries.
The Bay of Plenty Times attempted to contact Hollis and the liquidators for comment.
Sandra Conchie is a senior journalist at the Bay of Plenty Times and Rotorua Daily Post who has been a journalist for 25 years. She mainly covers police, court and other justice stories, as well as general news. She has been a Canon Media Awards regional/community reporter of the year.