Ore Jewellery director Brian Donaldson. The company was abruptly liquidated on Monday owing creditors about $200,000.
Ore Jewellery director Brian Donaldson. The company was abruptly liquidated on Monday owing creditors about $200,000.
Jewellery stores in Auckland and Christchurch that were abruptly shut down and put into liquidation owe creditors $200,000.
One of the biggest creditors is Spectre Group, which owns Westfields in Albany and Riccarton, Christchurch, where Ore Jewellery had its stores.
Ore director Brian Donaldson was seen emptying outthe shop's Level 2 stall in Albany on Sunday night, straight after farewelling a staff member who returned to work on Monday to find the business had shut up shop.
Liquidator Paul Vlasic, of Rodgers Reidy, said the company simply became overwhelmed with "cashflow issues" that resulted in Westfield issuing eviction notices.
"They get behind with their rent with Westfield and so they were served with a property law act notice, which is effectively an eviction notice. So that's why the store was closed at that particular time.
"They had to be out by Monday, that's when the notice expired, so legally they couldn't stay in those premises past the Monday so they closed both the Riccarton and the Albany kiosk.
"[It's] cashflow issues, really. It's expensive to be in those malls and they just weren't generating the sales to cover all the costs."
The company, which sold earrings, watches, necklaces and bracelets, was officially put into liquidation at 1.30pm on Monday, according to the Companies Office.
He described the liquidation as "fairly standard" but one that's "pretty tough on the employees".
Ore Jewellery was evicted from its premises in Riccarton and Albany Westfield malls after failing to pay its rent.
Vlasic confirmed the stock which had been cleaned out on Sunday night, had been passed on to them. It would now be sold to get money to pay creditors.
First to get paid would be staff, he confirmed.
"We have all that stock in our Christchurch office. That would go firstly to employees, they will be first cab off the rank in terms of getting paid from any recoveries from the stock."
He wasn't sure how long that would take but expected them to be paid before Christmas.
"We're still debating on the timing of when to sell this jewellery ... we have agents that will sell it on our behalf."
He said they would look at different ways as to how the sell the jewellery, whether that was online, pop-up shop or other avenues.
Vlasic felt for the staff.
"Hopefully they will get another job and get employment, that's the main thing ... you're a loyal employee and rock up to work on a Monday and you're expecting to see your boss there and he's scarpered."
As for those who had watches being repaired, Vlasic said they would be returned to their owners.
He said the first liquidator's report was being finalised but would be out by the end of the week.
About 10 staff are affected in both stores.
A staff member spoken to by the Herald today was pleased to hear they would be getting their final pay.
"That's amazing ... I've already lost half my savings to unexpected bills so to hear we're prioritised takes the sting out of how we all felt on Monday, which was expendable to say the least."
She had not heard from Donaldson since last looking him in the eye on Sunday evening when he told her he would "see her tomorrow".
The company has been operating since 2013. Donaldson is the only director. His partner, Bryce Ebben, was removed as a director of the company in August but remains a shareholder.
Other shareholders appear to include family and friends in Whanganui, Auckland and Christchurch, where Donaldson lives with Ebben.
When asked to offer comment to affected staff and customers on Tuesday, Donaldson said while it was an "absolutely awful situation" he said he had been advised not to talk about it.
