Mayoral hopeful owes creditors tens of thousands

Restaurateur John McGrath's bid for the Wellington mayoralty is under scrutiny as the former bankrupt admits he owes creditors tens of thousands of dollars.

Mr McGrath, who launched his mayoral campaign last month with the motto "Putting the Mojo back into the Mayoralty", was adjudged bankrupt in 1992. At the time he had a horse-riding school in Ohariu Valley and an events management company, and worked as a financial consultant. He was discharged in 1995.

"Yes, I have been bankrupted before, I am proud of that," Mr McGrath told The Dominion Post.

"If you work for yourself and you take some risks, sometimes things don't work out."

Mr McGrath has confirmed he owes creditors between $30,000 and $40,000 from the launch of his new bar, Buena Vista Social Club. Some are seeking legal advice to try to retrieve the money. He said he would pay off those debts once he received an expected gst return.

He also admits to owing money to his former mayoral campaign manager Tina Nixon, who confirmed yesterday that she had "severed" her working relationship with Mr McGrath. Neither would say how much money was outstanding, but Ms Nixon said she was considering legal options to recover the debt.

Mr McGrath said he had no debts, other than ordinary monthly bills, on the other companies he owned outright - Crazyhorse The Steakhouse, Ohakune restaurant Altitude585, and an events management company.

He also owns a quarter share in The Tasting Room bar.

As a Wellington mayoral candidate Mr McGrath is seeking to lead a council that is responsible for nearly $6 billion in assets. But he said he did not believe his chequered background would have a negative impact at the ballot box.

The Dominion Post reported last month that Mr McGrath's brother Danny McGrath, who owns a string of high-profile restaurants in Wellington, had distanced himself from his brother for fear the mayoral campaign would tarnish his business.

- © Fairfax NZ News