Hutt Valley King Toyota placed in receivership
High profile car dealership King Toyota is in receivership, with creditors owed an estimated $5 million.
The business has two sites in Lower Hutt and one in Upper Hutt.
Owner David Clarke called in the receivers after having a very quiet February.
Ten of the 51 staff have been laid off but the business continues to run as normal.
PriceWaterhouseCoopers receiver John Fisk believes it has a good future and there is every prospect it can be sold.
The business, he says, appears to have been under capitalised.
''It is early days, we have not really got to why the business failed but a lack of capital is probably a good summary.''
Toyota New Zealand is standing by the firm and Fisk says all warranties will be honoured.
The figure of $5 million is very much an estimate and he says the receivers still have a lot of work to do to get a final figure.
Laying off staff was unfortunate but ways to reduce cost had to be found, he says.
He is hopeful that there will be no more job losses.
Clarke is currently overseas but has been helpful, he says.
''It is always tough for the owner of a business when it goes into receivership.''
It is too early to speculate on who is likely to buy the firm but Fisk says it is a sound one.
It will continue to trade and the having the support of Toyota New Zealand should reassure potential buyers, he says.