Discount shop liquidation is concluded

Last updated 12:00 07/02/2013

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The liquidation of a Palmerston North discount shop is complete and it will soon be removed from the New Zealand Companies Register.

The 2 n'5 Dollar Shop on The Square, along from The Plaza, put itself into liquidation in late September 2011.

It was previously called The $2 Shop.

JM Law Ltd, which owned the 2 n'5 Dollar Shop franchise, was found to have an estimated deficit of $273,695, according to liquidator Rod McKenzie's first report.

Subsequently he received claims for $10,238 from secured creditors, $1820 from preferential creditors and $85,139 from unsecured creditors.

Mr McKenzie has now filed his final report with the Companies Office, showing total payments of $17,472 were made during his administration.

This included $3242 to an unnamed secured creditor, $3214 in legal expenses, $2455 in wages and holiday pay, and $4155 in liquidation fees.

"All realisable assets have now been sold. The shop fittings have been abandoned as the landlord changed the locks," Mr McKenzie's report said.

In a previous report he said the sale of the fittings, estimated to be worth $5000, could result in a dividend for unsecured creditors.

Mr McKenzie's first report also mentioned a $186,619 shareholder advance under the unsecured creditors category. He told the Manawatu Standard at the time such a big advance meant shareholders were either buying assets or trying to support the company.

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- © Fairfax NZ News

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