Three Little Birds Childcare & Education centres have closed in Northland as the company is currently under liquidation. Photo / Yolisa Tswanya
Three Little Birds Childcare & Education centres have closed in Northland as the company is currently under liquidation. Photo / Yolisa Tswanya
After failing to meet tax obligations and accumulating debts exceeding $1.8 million, Three Little Birds Childcare & Education has been placed into liquidation, leaving over 100 children without childcare and creating uncertainty for employees, parents and the wider community.
Three Little Birds Childcare & Education has four facilities in href="https://www.nzherald.co.nz/topic/northland/">Northland; two in Whangārei, one in Hikurangi and one in Kaitāia.
On the Kindello website, which compares childcare centres, the centres are each licensed for between 40 and 50 tamariki.
Three Little Birds Childcare & Education is owned by Wiwini Hakaraia who is listed as the sole director of the company.
Asked about the liquidation Hakaraia said, “Unfortunately, I’m unable to comment at this time due to legal advice. I would be interested in sharing our story when I’ve been advised that I’m able to.”
Regional manager for the Insolvency and Trustee Service, Anthony Pullan, said Three Little Birds Childcare & Education Limited was placed into liquidation at the Auckland High Court on September 27, on an application of the Commissioner of Inland Revenue (IRD)
“The Official Assignee was appointed as liquidator. The cause of this liquidation is related to a failure to account for taxation.”
The Official Assignee is part of the New Zealand Insolvency and Trustee Service and is appointed under the Public Service Act 2020 to administer the Insolvency Act 2006, the insolvency provisions of the Companies Act 1993 and the Criminal Proceeds (Recovery) Act 2009. The Official Assignee administers all bankruptcies, No Asset Procedures, Debt Repayment Orders and some liquidations.
Pullan said they were still in the process of gathering claims from creditors who are “mainly the IRD and employees at this stage … the debts at this stage are exceeding $1.8 million”. He added that more information will be available in the liquidator’s final report.
The liquidation is not the first brush with the law for Hakaraia, who in 2020 was cleared of charges during a high-profile trial.
The trial, which involved money laundering and drug charges against Hakaraia, Comanchero president Pasilika Naufahu, Connor Michael Tamati Clausen, a media personality, and an unnamed woman, had been heard at the Auckland High Court after a long running police operation.
Director of Three Little Bird Childcare & Education Wiwini Himi Hakaraia has declined to comment on the company's liquidation. Photo / Brett Phibbs
The four charges that were brought against Hakaraia were dismissed, while he pleaded guilty to two amended charges of possession of a Class A drug (cocaine). He was fined $1000 on each charge.
In sentencing Hakaraia at the time, Justice Graham Lang recognised he was appearing for the first time at 42, making him “obviously entitled to call on your good character”.
Justice Lang said Hakaraia should consider himself “fortunate the Crown supports this” as the amount possessed was at the “top end” and would usually call for prison or a community-based sentence.
Once places of learning, fun and growth, the childcare centres now stand empty after closing earlier this month. One in Whangārei had a notice posted on the door, informing parents and caregivers of the closure.
The partner of one of the former employees, whose name is known to the Advocate, said it was a difficult time for his partner, her colleagues and the children.
“My partner is devastated that all her good work and colleagues’ is ending.”
The man claimed that “since the announcement [staff] have not been paid for at least two weeks. This has put them in a serious financial position.”
Ahead of their closure earlier this month, the centres held farewells for the staff, children and their families, who were all invited to share kōrero and memories about the centre.
Pullan said potential purchasers have been identified for the assets belonging to two of the sites.
“We are currently liaising with those parties. The company leased each of its sites with the leases now terminated.”
He said while they are unable to provide the details of the purchasers, the assets include three vehicles (Toyota Minibuses) and other miscellaneous items that were at each daycare like office equipment, desks, tables, toys, etc.
He said the Official Assignee will report any suspected offences by the director or management to the Registrar of Companies for investigation.
The Mill Rd centre now stand vacant after closing earlier this month. Photo / Yolisa Tswanya
“Employees are provided a preferential creditor status pursuant to Schedule 7 Companies Act 1993 for wages for services provided to the company during the four months before liquidation and all holidays pay payable due to the termination of the employment following the liquidation. The preferential claim amount is limited to a claim not exceeding $31,820. Any additional claim over that amount will be an unsecured claim ranked with other general creditors.
“It is acknowledged that this is a difficult time for the employees, tamariki and their whānau, creditors, and the wider community. We are committed to resolving this situation as quickly as possible for everyone involved.”
The Tikipunga Centre has also been left vacant following closure, due to liquidation. Photo / Yolisa Tswanya
The Ministry of Education has suspended the centres’ childcare licences and MoE has advised that there is a payment outstanding to the Three Little Birds Childcare and Education Limited.
“It is anticipated that these funds will be received on November 1. This will allow the liquidator to pay an early dividend for outstanding wages to employees.”
Ministry of Education hautū (leader) Te Tai Raro (North) Isabel Evans confirmed the four licences have been suspended but would not speak to the amount owed.
“It is not appropriate for the ministry to comment on the amount of funding being paid to the liquidators.”
Ministry of Education hautū (leader) Te Tai Raro (North) Isabel Evans said the four licences for Three Little Birds Childcare & Education have been suspended.
She said a new operator can now apply for the licence to operate from these premises and the “ministry is aware there are interested parties, however, to date we have not received any applications”.
Several tamariki have enrolled at existing services in Whangārei and Kaitāia.
The ministry has extended the licences of three ELS to support this transition. Given the need for both qualified and unqualified staff in Te Tai Tokerau, the ministry understands staff will be absorbed into existing ELS.
“The ministry is unable to control and is not always aware that a company or person is at risk of going into liquidation. ELS is privately owned and operated, the ministry provides funding to support the provision of education and care.”
Employees or anyone else that was owed money, at the start of the liquidation, would need to file a claim with the liquidator and information is available on www.insolvency.govt.nz.
