Sports retail business owes $1.2m
Adventure Sports, the company that ran the Stirling Sports stores in Blenheim and Nelson, is in liquidation owing creditors more than $1 million.
Owner Greg Hall closed the Stirling Sports shops in Blenheim and Nelson a week ago, saying the $350,000 cost of bringing his Blenheim building up to earthquake standard had crippled his business.
The two-storey building on the corner of Market and Main streets in Blenheim was one of 23 in Blenheim and Picton under notice by the Marlborough District Council to be strengthened to meet earthquake standards or be demolished.
Mr Hall said last night he had put the company into voluntary liquidation because of his inability to pay bills.
Although he did not want to talk about his creditors, he had done his best to pay most of his bills.
He plans to hold a liquidation sale in the Blenheim store soon to get rid of all the stock from both store.
The building, which has been on the market since October, is separate to the sports store business.
Geoff Falloon, of Biz Rescue, has been appointed liquidator and has set January 20 as the deadline for creditors' claims.
Negotiations were taking place with prospective new owners for the Trafalgar St store, Mr Falloon said.
His first liquidator's report shows secure creditors are owed just over $1m, the largest being the ANZ Bank which is owed $993,742.
The company owes $108,983 to preferential creditors - staff, taxes and KiwiSaver, and another $147,156 to unsecured creditors which include Nelson and Blenheim businesses.
Its assets are estimated at $572,700, leaving an estimated deficit of $759,820.
Mr Falloon said the proceeds of the sale of assets would be distributed to creditors and that the liquidation was expected to be completed within five months.
The Marlborough Express