QE Health announced the liquidation on its Facebook page on Thursday.
“We can assure you that things will continue to operate as usual while the liquidator endeavours to sell the business as a going concern,” the post said.
It said all facilities and programmes would remain available and operational, and staff would continue their duties as usual.
QE Health offers a range of clinical services including rheumatology, physiotherapy, psychology, orthotics, dietetics, occupational therapy, and clinical spa treatments.
It uses Rotorua’s natural geothermal resources as part of its services.
Tom Rodewald, of Rodewald Consulting in Tauranga, has been appointed liquidator of QE Health Ltd by a special resolution of shareholders.
QE Health opened its $19-million, purpose-built health and wellness facility in February 2023. Photo / Ben Fraser
QE Health interim chief executive Craig Wilson referred further questions from the Rotorua Daily Post to Rodewald, as did Ben Sandford, chairman of the Queen Elizabeth Hospital Community Trust
The registered charitable trust is the sole shareholder of QE Health Ltd.
Rodewald declined to comment before the first liquidator’s report, due to be released on November 27.
Signs of strain before liquidation
On the Charities Register, QE Health Ltd’s latest available annual return summary, for the financial year ending June 30, 2024, showed a net loss of $1.345m.
Its consolidated financial statements for that year said under the heading “Going Concern” that “an inherent uncertainty remains”.
It said the Queen Elizabeth Hospital Community Trust Group was “reliant on the ongoing support of funders and the realisation of contracts and/or cost savings”.
The old Queen Elizabeth Hospital building in 2004. Photo / NZME
“If the Group is unable to successfully realise one or more of these actions, the Group may not be able to realise its assets and discharge its liabilities in the normal course of business.”
An independent auditor’s report said as of June 30, 2024, the group’s liabilities exceeded its assets by $5.551m.
Funder ‘deeply saddened’
Ministry of Business, Innovation and Employment regional economic development and investment services general manager investment management Brent Chalmers said it acknowledged the decision to put QE Health into voluntary liquidation was “not taken lightly”.
Chalmers said it would be a difficult time for QE Health staff, their families, and the local community.
Along with other QE Health funders, the ministry had worked to support the business and had been “closely monitoring” QE Health’s situation.
The Government, through the Provincial Growth Fund, provided QE Health with funding in 2020 to build a 3000sq m purpose-built integrated facility in Rotorua.
Overall, Crown support to the business totalled $11.5m, Chalmers said.
He said the liquidator would provide guidance on the next steps.
“As this is now in the hands of the liquidators, we cannot comment further on details.”
Rotorua Trust chief executive Blair Gilbert said it was “deeply saddening to see QE Health reach this point”.
“We acknowledge the dedicated employees, loyal clients, and the many community partners who have been central to QE Health’s journey. We are hopeful that a positive solution will arise.
“As the liquidation process is under way, we will respect the process, and therefore it is not appropriate for us to comment further.”
The Rotorua Lakes Council was contacted for comment.
Locals back ‘centre of exellence’
Among commenters responding to QE Health’s Facebook post was former Rotorua Mayor Steve Chadwick, who encouraged people to “support this wonderful facility to keep it in our community”.
“This Government will hopefully understand the potential. It is a national centre of excellence in rehabilitation and health restoration.”
Para-athlete Siobhan Terry wrote that QE Health “helps so many people”, with “incredible facilities and kind staff”.
She said it was where she had the prosthetic made for her club foot, which she needed to wear shoes.
“This place is a necessity,” Terry said.
Megan Wilson is a health and general news reporter for the Bay of Plenty Times and the Rotorua Daily Post. She has been a journalist since 2021.