Cafe sold for well below asking price
A Palmerston North cafe that was on the market for $200,000 sold for little more than a tenth of that.
Mao Bar, which was listed on the Companies Office as Alan Rowell Investments, was placed into liquidation early this year with debts of $266,418 to various creditors.
Before then, owner Alan Rowell had listed the business for sale with an asking price of $200,000.
That was despite liquidators valuing the business and its assets at $100,000.
The latest liquidation report, released yesterday by Lyn Carey, shows the business was sold for $28,750.
But none of that money has yet gone to paying back debts.
About $218,000 was owed in unpaid GST and PAYE taxes, while $20,000 was owed to ANZ Bank.
The latest liquidation report showed the money made from the sale of the business, along with various other funds, had all been spent by the liquidators on fees, travel and other bills.
Mao Bar was established about seven years ago, and was purchased by Rowell at the end of 2010.
The cafe had many owners over the years, including Richard Soper, who was found guilty of 55 tax evasion charges from the time he ran the business.
He purchased Mao Bar from his partner, Tina Louise Hulena. Her company, Takau Bay Developments, was put into liquidation because of unpaid tax.