PK furniture sold, but still owing former owner $22m
After going into receivership in May, PK Furniture has been sold to a newly established furniture retailer.
The chain was sold to Highbury Group which was incorporated in June. The receiver's report did not reveal how much PK Furniture had been sold for, but revealed that it still owed its former owner $22 million.
Co-receiver, Andrew McKay of BDO Auckland said following the receivership notice, over 1000 customers contacted him raising concerns about whether they would receive their orders.
He said some concerns had been resolved while the receivers would be responding to the rest in the next week.
McKay said PK's employees had been taken on by the new owners.
PK Furniture owed its employees $621,000 in wages, but has paid this since going into receivership, the report said.
The furniture chain has 16 stores around the country.
As at May, PK Furniture owed Inland Revenue $817,000 and New Zealand Customs $102,000.