Kapiti Ten Pin Bowling company goes into liquidation
One of Kapiti's most prominent recreation companies, Kapiti Ten Pin Bowling Ltd, has gone into liquidation.
Shephard Dunphy insolvency manager Ben Francis said the company's business would continue trading while liquidators looked to sell it.
The company holds a 10 year lease in the Kapiti Ten Pin Bowling and Entertainment Centre at Paraparaumu, which was sold to Kapiti businessman Jack Leslie in 2009.
Mr Francis said the business was being advertised, but it was too early to say how much interest there is in buying it.
The liquidators' first report said it was understood the company's failure was due to ''high operating costs''.
''The shareholders of the company have advanced considerable sums of money to the company, with funds being advanced as recently as April 2012.''
Shareholder John Phillips said the owners were gutted, and opted to go into voluntary liquidation after years of fighting the economic downturn.
''It's been a hard road for the last five years. A lot of the problems really stem from the recession, [and its impact on] the discretionary dollar.''
He said the most important thing for shareholders is that the business can be sold as a going concern.
Kapiti Ten Pin Bowling went into liquidation owing $885,700, with the combined book value of the company's assets listed as $577,214.
Shareholder and related party advances to the company total $660,000 in the report - listed as unsecured creditors along with 41 trade creditors, owed $100,000.
Unsecured creditors have no protection or security for the money a business owes them. Secured creditors get money back before unsecured creditors.
Subject to confirmation, Kapiti Ten Pin Ltd's only secured creditor is ANZ Bank, which is owed $100,000.
The Te Tupe Rd centre opened in 2007 offering the only bowling alleys in Kapiti and Horowhenua. It includes 14 bowling alleys, a cafe and a bar.
In 2009 Fairfax reported the centre was sold for $2.5 million - including a 10-year lease with Kapiti Ten Pin, which promised a net income of $220,000 annually.
Voluntary liquidation is when shareholders vote to appoint a liquidator to wind up their company.
The liquidator, usually a chartered accountant, will oversee the sale of company assets and interests for the benefit of company creditors.