Kia Toa Hotels goes into liquidation
A company linked to a prominent Palmerston North sports club has gone into liquidation, with an estimated half a million dollars of debts.
But the club will hardly mind, as most of the money is owed to itself.
Kia Toa Hotels Ltd was placed into liquidation last week.
The company was set up to run operations at the former Awapuni Hotel on Pioneer Highway.
The hotel no longer exists, after Kia Toa sold it to supermarket chain Progressive Enterprises for $2.5 million last year.
Since then, the hotel has been demolished and the land sits bare while Progressive awaits resource consent to build a Countdown there.
According to his first report, liquidator Sinclair Richardson of Richardson Bennett said the company had four creditors - Inland Revenue, Lion Breweries, Kia Toa Trust and Kia Toa RFC Inc.
While taxpayers and the brewing company were owed a combined total of $13, the two Kia Toa outfits were owed $460,000.
Kia Toa Hotels has two bank accounts holding $795 in them.
Richardson said the hotel company had not been trading for some time.
There was little prospect of creditors getting their money, and the liquidation was likely to be finished by November, he said.
Kia Toa purchased the Awapuni Hotel in 2001.
At the time it was a healthy operation.
But during their time owning it, various gambling and liquor law changes saw the hotel become what club chairman Craig Mangos previously described to the Manawatu Standard as a "marginal operation".
Having the clubrooms away from playing fields, and a large contingent of non-drinkers in the club's ranks, did not help things either, he said.
The sale of the hotel had made the club debt-free.