Subway at Motueka has gone under. The company running the fast food outlet, Lucky Five, has proved to be not so lucky and has gone into liquidation.
The shop on High St has closed and liquidator Geoff Falloon, of Biz Rescue, said he would try to sell the business, preferably to another Subway franchisee.
The liquidator's first report to the Companies Office shows an estimated deficit of just over $300,000.
Companies Office records show Lucky Five's director and majority shareholder is Tracy Spark, who is also listed in the report as an unsecured creditor owed $237,500.
The liquidation notice says there will be less than 20 cents in the dollar for unsecured creditors.
Subway's South Island development agent Stan Greene said its aim was to get the store reopened as soon as possible.
Subway had not closed the store, it had been the franchisee's decision to shut and bring in a liquidator, he said.
A minimum 10-day period had to elapse before Subway could act, he said. It would want to see the store reopen and protect the brand.
He said sales at the Motueka store had been as expected prior to the closure and Subway had been satisfied with the volume.
Ms Spark had been with the store since it opened nine years ago and had held the franchise for three years.
Subway had 56 stories in the South Island and only one other, in Christchurch, had gone into liquidation, he said.
Mr Falloon could not comment on what had gone wrong with the business.
- © Fairfax NZ News