Diesel Deliverance closes
Liquidators of an insolvent Blenheim business say customers' failure to pay bills forced the company to close, owing more than $200,000.
Jeff Hart of BDO Wellington was one of the liquidators assigned to Diesel Deliverance, which went into liquidation on February 7.
The business, a diesel mechanic workshop, servicing and repairing trucks and diesel vehicles in the Riverlands Industrial Estate south of Blenheim, was owned by Anthony Watson of Seddon.
In his first report, Mr Hart said the company had experienced difficulty in collecting debts from its customers, with many of the customers being unable to pay.
The statement of affairs showed two companies, which were not named, owed Diesel Deliverance a combined $114,618 for services rendered.
"This has significantly impacted the company's cash flow, creating pressure on the company," Mr Hart said.
He also identified a shortage of skilled diesel mechanics in Marlborough.
"There simply has not been enough qualified mechanics available in the region to perform this work.
"This has added further pressure to the company, resulting in a decision to wind down operations."
There were more than 80 known creditors owed a combined $279,773.
The only secured creditor, a bank, is owed $90,000.
Employees and Inland Revenue are listed as preferential creditors, owed $8707 and $78,064, respectively.
Mr Watson declined to comment when the Marlborough Express visited the workshop on Wednesday.
His friend, Marlborough Auctions owner John Firks, said Mr Watson had operated the business for 17 years and was very upset about having to close because some customers were not paying their bills.
Mr Firks is holding a receivership auction of the company's stock and fixed assets at the workshop in Sheffield St, Blenheim on Saturday at 10am.
The liquidators report estimates the total value of the fixed assets and stock to be more than $160,000.
Stock to be auctioned includes a large number of vehicle parts and servicing items.
Fixed assets include a 2007 Holden Commodore sedan, a forklift and office equipment, a REDI MIG4D welder, 40-tonne trolley jacks, a 50-tonne press and other tools and machinery equipment.
The Marlborough Express