“It has been well reported that the Inland Revenue has a renewed focus on debt collection. As the Inland Revenue commissioner is the largest applicant creditor in New Zealand, we would expect activity to continue at current levels.”
As the Government and the country continues its economic recovery, the Herald is spotlighting the 10 largest liquidations by creditor claims this year to highlight the scale of those businesses.
10. Baby City Retail Investments: $7,295,520
New Zealand-owned-and-operated for over 30 years, retailer Baby City sold a range of nursery and baby products across the country. Originally owned by a company named Baby City Retail Investments, the business failed because of the combination of a deep recession and falling birth rates in the aftermath of Covid.
Insolvency specialists Iain Shephard and Jessica Kellow of BDO Wellington were appointed to the business on December 31, 2024, and worked with the owner Campbell Gower and its sole director at the time of liquidation, Anzac Dawson.
Up until its liquidation, the business had only been able to continue trading with the ongoing financial support of Gower. But after sustained poor performances and financial losses, Gower stopped funding the operation.
As the business was unable to trade after the appointment of liquidators, it was agreed that the best outcome for the business was to facilitate the sale of certain stores and assets to a new entity named Baby City Limited, owned by Gower, which is still in operation today.
Babycity went into liquidation on December 31, 2024. Photo / Richard Robinson
9. Libelle Group: $8,393,000
A major provider for the Government’s Ka Ora, Ka Ako Healthy School Lunches programme, Libelle Group had been contracted to deliver about 125,000 meals daily.
It owned and operated 10 central processing kitchen facilities that were used to reheat and distribute school lunches into schools, and had 60 tuckshop/canteen services in school locations across the country.
After paying employee wages on March 6, 2025, the business’ cash reserves were “exhausted” and it was no longer able to purchase essential goods and services to enable ongoing trading.
Libelle’s sole director Johannes Tietze took advice and considered alternative options, but was forced to appoint Deloitte Liquidators Robert Campbell and David Webb to the business on March 11. At the time, more than 500 jobs were left in limbo.
Campbell and Webb received an offer in principle from Compass Group New Zealand, another school lunch provider, to assume responsibility from Libelle for operating and managing its school lunch contracts at the time of liquidation. The offer was agreed to on March 13.
Subsequently, Compass made an offer to acquire the business and assets of its wider school lunches business. Campbell and Webb described Compass as “the only viable buyer for the business” and successfully entered into a sale and purchase agreement, which was settled on April 1.
8. Obelisk Industrial: $11,071,256
Obelisk Industrial offered a range of structural and industrial steel fabrication and engineering services to clients in the commercial and industrial sectors, including providing expertise in project management, onsite rigging and structural steel erection and maintenance, shutdown and welding services.
The business’ sole shareholder, Kara Culham, sought professional advice and elected to place the business into liquidation on June 3, with Ecovis KGA insolvency practitioners Raymond Cox and Gareth Hoole appointed liquidators.
According to Cox and Hoole, Obelisk was loss-making and experiencing cashflow difficulties for several months prior to their appointment, caused by the current economic environment, high levels of debt and exacerbated by a complete lack of governance on the part of the company’s director, Steven Culham.
An independent management consultancy firm had been engaged to attempt to restructure the business. However, the company’s financial position deteriorated, culminating with an alleged misappropriation of a significant amount of funds by the director. Obelisk was consequently unable to meet its obligations as they fell due in the normal course of business.
Following the business’ placement into liquidation on June 4, Stephen Khov and Kieran Jones of Khov Jones were appointed receivers by United Steel, under the powers contained in its terms and conditions of trade with Obelisk dated February 3, 2021.
Khov and Jones have since wrapped up their receivership, realising the business’ remaining assets and distributing remaining funds to secured creditors.
7. Masta Maintenance Services: $11,119,517
Masta Maintenance provided industrial cleaning and maintenance services for large-scale transport providers and city councils in Auckland and Wellington. Masta’s directors Rachael Boyle and Wayne Hemi operated the business from Australia before returning to Wellington in recent years due to personal circumstances.
The main reason for the company’s insolvency was financial and operational difficulties resulting from Covid, during which the business’ wage costs grew due to labour shortages. Masta incurred significant tax arrears over a number of years and following the loss of a key contract in mid-2024, the business began winding up its operations.
The business was placed into liquidation by the Inland Revenue Department for failing to meet its tax obligations, and PricewaterhouseCoopers liquidators Janet Sprosen and Stephen White were appointed on February 4.
6. V & S Trustee Company (Peacocks Childcare): $13,420,456
V & S Trustee Company was placed into receivership on June 30 and into liquidation on July 31, 2025.
The receivers were appointed by New Zealand Mortgages and Securities over a general security deed, while the liquidators were appointed by the Inland Revenue Department for failing to meet its obligations. This included overdue income tax and goods and services tax (GST).
V & S acted as a corporate trustee for the Mahunga Trust and the Malvern Trust, which owned property in Auckland from which three early learning centres were operated by related companies Peacocks Ltd and Peacocks NZ.
The receivers continued to operate the childcare centres when appointed and put them up for sale, as well as the properties, reaching an agreement to sell them to Childcare & Learning Group Services.
The sale had yet to settle as of September 12, when the first receivers report was released.
The liquidators estimated the Malvern Trust had liabilities of $7.35 million, while the Mahunga Trust had liabilities of $6.066m.
5. Hamilton Accommodation: $13,887,776
Hamilton Accommodation owned 15 properties operated by related entities, including Abbey Motel Hamilton Limited, Te Rapa Motor Inn Limited and Hamilton Motel Limited, all of which are in liquidation.
According to KPMG liquidators Kristal Pihama and Leon Bowker, the Te Rapa Motor Inn and Abbey Motel Hamilton were historically used for emergency housing. The motels subsequently sustained significant wear and tear, tenant-related damage and reputational issues.
When emergency housing funding ceased, the businesses struggled to attract customers and subsequently suffered significant cashflow pressure.
In addition to the significant damage costs, the director stated that the company’s failure resulted from an inability to sell the motel properties, which impaired its capacity to recover from cashflow pressure.
The company was placed into liquidation for failing to meet its obligations to Inland Revenue, consisting of overdue income tax, employee PAYE and GST, together with associated penalties and interest.
In a recent update from September 30, the business’ 10 properties, comprising three motels and seven rental properties, were sold by Bayleys. They attracted 60 inquiries and 25 offers.
4. Ex Bal: $14,684,000
Ex Bal (previously known as Boxman Alpha) and its known subsidiaries were the second-largest operator within the New Zealand storage sector.
It occupied eight sites throughout New Zealand to support the four main operational parts of the business, comprising container retailing and leasing, container modifications and fabrications and self-storage services.
Ex Bal operated as the parent entity of the group, with ownership of all trading stock and the majority of the group’s leasing fleet.
Fervor’s John Scutter was appointed as liquidator in September 2025 after InSolve Partners’ Ryan Earthorne vacated the role. Back in April 2025, BDO’s Diana Matchett and Colin Gower were appointed joint receivers of the company.
According to Matchett and Gower’s receivers report, the business had been impacted by high interest and land-lease costs, poor utilisation across its lease fleet and adverse macro-economic conditions impacting market demand.
3. Kitchen Things: $18,069,444
The Kitchen Things group of companies, including Kitchen Things NZ, Applico, Jones Family Investments and Appliance Works, was placed into voluntary administration and receivership on August 20.
The business was founded in 1986 and was an importer, distributor and retailer of kitchen and laundry appliances (including servicing). It operated 12 stores across New Zealand and employed roughly 125 staff at the date of receivership.
Kitchen Things in Morrow St, Newmarket was one of 12 stores across New Zealand that went into receivership. Photo / Jason Dorday
Administrators George Bannerman and Rees Logan of BDO Auckland said that while Kitchen Things had benefited through the Covid-19 period, sales decreased significantly in the ensuing years.
“With the decline in sales and margins, the high fixed cost base made it unprofitable. Restructure steps were undertaken to reduce costs, with store closures and staff reductions. However, it appears the attempts to reduce costs were unable to be done at a level that made the group viable on an ongoing basis.”
Attempts to raise equity and sell the business or parts thereof were also not successful. The group was eventually placed into liquidation by its creditors at a watershed meeting on September 24, recommended by Bannerman and Logan.
2. Smiths City: $26,845,000
Smiths City was originally founded in 1918 and operated from Christchurch initially, before expanding to various locations throughout New Zealand.
The company operated nine stores, primarily located in the South Island, with a focus on furniture, electronics and appliances, and employed roughly 137 staff.
A rebranded Smiths City store.
Colin Gower and Diana Matchett of BDO Christchurch were appointed administrators of Smiths City (2020) Limited on September 2. The company was then placed into liquidation at the watershed meeting of creditors a month later on October 2.
Gower and Matchett said the company had experienced a significant decrease in sales in its 2024 financial year amid a challenging economic environment and reduced consumer spending. Rising costs also had a significant impact on its margins.
Management restructured the business by reducing staff and took steps to vacate unprofitable stores, but couldn’t reduce costs within the timeframe or at the level needed to turn around the company. Attempts by Smiths City to sell the business in the months before going into administration had also been unsuccessful.
1. Hobson Green Group: $31,575,000
The largest liquidation by creditor claims to date in 2025 goes to Hobson Green Group and its six related Auckland property companies, which completed about 200 housing schemes, particularly in the city’s northwest.
The six related companies include KBS Construction, Henderson Green, Hobson Green, South Pacific Green Development, Pooks Green Development and Swanson Project. All were placed into liquidation on October 3.
According to liquidators Steven Khov and Kieran Jones, the companies failed after having insufficient assets to satisfy their liabilities.
Edison Xin, managing director of Takapuna-headquartered Brilliant Stone, which is the over-arching entity, cited a range of problems that led to the companies’ demise.
Those problems included defaults on settlements by pre-purchasers, delays getting council inspections completed, hold-ups achieving code compliance certificates, delays on titles being issued by Land Information New Zealand, the economic downturn and previously high interest rates.
Housing project Hobson Green (centre) at 133 Clark Rd, Hobsonville Point, Auckland. Six companies which failed owing $20 million-plus were connected to this scheme, including builder KBS Construction. Photo / Brilliant Stone
Honourable Mentions
Despite not making the top 10, these companies also had a considerable level of creditor claims associated with their liquidations, with related party loans and yet-to-be-confirmed claims the reason they couldn’t make the list.
Cherri Global and its two subsidiaries owe roughly $43m to creditors, with the bulk through related parties totalling $41.27m.
Cherri Global was a major cherry grower based in Hawke’s Bay. The three companies faced challenges following the impacts of Cyclone Gabrielle and an unsuccessful attempt to raise new equity to fund the development of the orchards.
GrabOne owes creditors more than $16.5m, with $9.2m owed to a related-party creditor. The daily deal website went into liquidation in October due to “funding constraints”, leaving both businesses and customers holding on to vouchers out of pocket.
The Body Shop’s former owners were forced to place the business into liquidation after three years of trading losses, owing creditors roughly $12m, although $7.45m was owed through inter-company loans to its Australian parent.
Somerville had several recommendations for how businesses could avoid making the same mistakes:
Stay on top of cashflow. It’s very important to understand what your 12-week rolling cashflow is telling you.Pay attention to the basics, such as getting invoices out immediately and collecting payment within your agreed terms of trade.Make early contact with creditors to agree repayment plans and stick to them. For example, contact the Inland Revenue Department as soon as you can if you realise you won’t be able to make a payment on the due date. Seek professional advice if you are facing cashflow difficulties.Finally, be across your duties as a director under the Companies Act.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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