Rotorua company in receivership

Verda on Te Ngae Rd. PHOTO/STEPHEN PARKER

More than 20 jobs could be up in the air after Rotorua business Verda International Ltd was placed in receivership.

Receivers were appointed on Friday for the wood processing business which makes and markets outdoor wood products such as decking and furniture.

Receiver James Greenway of BDO Auckland said they had started the process of looking at the financial position of the company and what future options were available to it.

"We will be working to quickly establish that during those first few days."

Mr Greenway said his company was appointed as receivers by a secured creditor.

He said it wasn't clear how much was owed at this stage.

Part of the process would be looking for a potential buyer for the business, he said.

"As far as employees go it is at a pretty early stage. We will have to make a decision in the near future."

Mr Greenway said he believed there were between 20 and 25 staff at the business.

He expected a first report, which would include information around the amounts owed to secure creditors, to be available in about two months.

A person who answered the phone at the company today said nobody was able to speak to the Rotorua Daily Post and referred all inquiries to the receivers.

The company website had a message saying it was currently in receivership.

"Our online store is closed until further notice. Sorry for any inconvenience caused."

Rotorua Chamber of Commerce chief executive Darrin Walsh said any business going into receivership wasn't good for Rotorua.

"There is the domino effect on other businesses and people in Rotorua."

He said businesses failed for a number of reasons and he would be interested to know more about the reasons behind it.

"The receivers come in and see what can be done. It could be that someone can buy the business. It really does depend on why the business failed."

The business has exported product to Australia, Europe, Middle East and Japan and in the past Prime Minister John Key has visited its Te Ngae Rd site.