A former superyacht chef’s Ohakune eateries are insolvent, with creditors claiming more than half a million dollars even after the company received almost $287,000 in Covid-19 wage subsidies.
Out of Order Tapas, formerly named Blind Finch Hamburgeria and Bakehouse, and Birchhill Bakehouse, Bodega and Boardroom were placed in liquidation onApril 4.
Liquidators Christopher McCullagh and Stephen Lawrence of PKF Corporate Recovery & Insolvency were appointed to liquidate the two businesses.
The first liquidator’s reports for Derek Allomes Trading, trading as Out of Order Tapas, and Phoenix Fine Foods, trading as Birchhill, were out last week.
McCullagh and Lawrence said of both companies: “We understand that the company suffered a range of compounding issues such as impact of Covid-19, rising costs, decline in revenue and shortage of staff.”
Liquidators said the shareholder and director for both companies, Derek Allomes, decided to liquidate the companies “to conduct [an] orderly windup”.
Allomes declined to comment on the liquidation of Out of Order and Birchhill.
His career has reportedly included cooking on yachts in the Mediterranean and Caribbean, with a stint aboard a yacht owned by what he has described as one of the world’s 10 richest men.
“There are so many houses under construction and people with great business ideas,” he said.
Allomes moved Out of Order, then named Blind Finch, from a restaurant to takeaway-only and started a bakery in the same building during the pandemic.
The bakery, Birchhill Bakehouse, did so well over lockdown that he expanded it into the former BNZ building on Goldfinch St.
After eight months of renovations, Birchhill opened on May 13 last year. Blind Finch reopened as a dine-in restaurant the same day.
According to Work and Income’s Covid-19 wage subsidy search engine, Derek Allomes Trading took more than $287,000 in wage subsidies between 2020 and 2021.
The search showed the company’s last wage subsidy in August 2021 came in at $132,432.00 for 26 employees.
IRD is claiming $145,447 from the company while outstanding employee wages and holiday pay came to $10,115.
Out of Order’s unsecured creditors also include IRD, claiming $36,920 in income tax and small business loan repayments.
Business loan creditors are claiming $92,000 with other loans coming in at almost $53,000.
Trade creditors add to the list claiming almost $82,3000 bringing unsecured claims to $264,237.
ACC, BNZ and media outlets Ski FM and the Ruapehu Bulletin also make Out of Order’s creditor list along with the Restaurant Association and Placemakers.
Creditors also include food and drink suppliers Peoples Coffee Bidfood, Ohakune Brewers, Sabato, Liquorland, Black Bull Liquor, Coca-Cola, Iberian Food and Gilmours.
McCullagh and Lawrence said Out of Order’s assets were unknown but found a $48,000 bank account deficit.
Meanwhile, Allomes’ second operation Birchhill Bakehouse, Bodega and Boardroom’s top creditors are also employees and IRD.
Employees are claiming $14,343 while the tax department’s claim comes in at over $65,190.
Birchhill’s unsecured creditors are claiming over $87,000 and includes ACC and several businesses.
The Blind Finch was renamed to Out of Order Tapas last year and moved to a new location. Owner Derek Allomes opened Birchhill Bakehouse, Bodega and Boardroom at Blind Finch's former location. Photo / Bevan Conley
Local businesses Piwakawaka Creations and Alpine Security Services are claiming funds from Birchhill along with Ruapehu Media.
Grocery suppliers claiming funds from Birchhill include New World Ohakune, Peoples Coffee, Ohakune dairy Rendezvous, Bakels, Community Milk, Bidfood and Japanese drink maker Frucor Suntory.
Utilities companies also join both creditor lists including Vector, Nova Energy, and Paymark.
Birchhill’s assets were unknown at the time of the report.
RAL administrator John Fisk said he hoped that after years of Covid and weather disruption, the ski season on Mt Ruapehu will be a success.
“We’re very grateful that we’ve had funding from Government and from ANZ Bank to enable work to be done in the summer that prepares the mountain for the winter season,” Fisk said.
“This is the next step in that process. It’s a very important step to get the season pass campaign under way and that will help build towards winter.”
RAL had received $10 million from the government, but Fisk said there was no plan to ask for more.
Future of Ohakune Project chairperson Christine Hickman told RNZ the group wanted the local council to bring forward a $2 million revitalisation project for the town to the coming financial year.
“The success of Ohakune is a significant driver of the success of the district,” Hickman said.
“The way we feel at the moment is Ohakune needs the focus and commitment of our local council to bring it up to the level of quality that you see at other parts of the country.
“This is really important if we are going to be able to compete in a very competitive domestic tourism market.”
Hickman said the region diversified recently into becoming a summer hotspot as local bike trails proved popular.
