Wellness centre QE Health Rotorua to close permanently next week after going into liquidation

QE Health in Rotorua was put into liquidation on November 20 and will close next Friday for good. Photo / Ben Fraser

Iconic Rotorua wellness institution QE Health has announced it will permanently close, after going into liquidation last month.

QE Health announced on its Facebook page today that it would close from next Friday, December 19.

“Unfortunately, all efforts to find a buyer for the business and to save the organisation haven’t been successful,” the post said.

People who had paid for a gym membership or spa subscription and who wished to make a claim were asked to pick up a form at reception or contact the liquidator.

Companies Office records show a new liquidator, Steven Khov of Auckland-based Khov Jones Limited, was appointed on December 3.

The Rotorua health and wellness centre, formerly known as Queen Elizabeth Hospital, was put into liquidation on November 20.

According to the first report by the original liquidator, Tom Rodewald of Rodewald Consulting, QE Health Ltd owed at least $13 million to 132 known creditors.

The November 27 report said there were 11 potential buyers for the business.

It said secured creditors were owed an estimated $10.9m, which included $8.04m to Crown Regional Holdings Ltd and $2.5m to the Rotorua Trust.

The two entities were among the funders that enabled the business to relocate from its original Whakaue St site to a $19m purpose-built facility on Hinemaru St in 2023.

The old Queen Elizabeth Hospital building in 2004. Photo / NZME

The estimated amount QE Health Ltd owed to unsecured creditors totalled nearly $2.3m.

QE Health was originally established in 1942 as a temporary hospital to rehabilitate soldiers returning from World War II.

It is owned by a charitable trust, the Queen Elizabeth Hospital Community Trust.

The company’s management told Rodewald QE Health failed because it was unable to generate sufficient income to cover its overheads and costs.

The business offered a range of clinical services, including rheumatology, physiotherapy, psychology, orthotics, dietetics, occupational therapy, and clinical spa treatments.

Commenters on the business’s Facebook post expressed shock and sadness about the closure, concern for the staff, gratitude for its services, and questions about how those would be provided in the future.

Bijou Johnson is a multimedia journalist based in the Bay of Plenty. A passionate writer and reader, she grew up in Tauranga and developed a love for journalism while exploring various disciplines at university. She holds a Bachelor of Arts in Classical Studies from Massey University.