A liquidators’ report released on Wednesday shows the company owes over $2 million to creditors.
The report also highlights that a buyer has been found for the business, and liquidators are reviewing that potential sale.
If the sale goes ahead, the proceeds could be used to help repay debts.
However, it is unclear how much the potential sale is worth.
The company distils and sells gin, vodka, rum and liqueur, and, as of last year, was in the process of adding brandy to its catalogue.
Its spirits are sold across New Zealand and in the United States.
Co-founder Blair Nicholl says he and the directors are “absolutely gutted” they couldn’t find a way to keep The National Distillery Company going in its current form.
According to the liquidators’ report, the company owes about $1.5 million to preferential and unsecured creditors, mostly to Inland Revenue and New Zealand Customs, while staff are owed $14,000 in entitlements.
Secured creditor figures aren’t yet finalised, but ANZ is owed about $730,000.
Customs started a liquidation application process against the company before the voluntary liquidation.
Meanwhile, the report shows about $75,000 in accounts receivable, meaning money owed to the company itself.
The value of stock (spirits), assets and the wider business have been withheld, so as not to undermine the sale process.
Liquidators Damien Grant and Adam Botterill, from insolvency firm Waterstone, are reviewing with ANZ the proposed business sale and are hopeful it can be sorted in a way that retains staff who helped build the brand.
“For that reason, we don’t have any plans at this stage to sell stock outside the business sale process, so we won’t be operating the website or premises to sell stock down separately,” the liquidators told Hawke’s Bay Today.
The National Distillery Company co-founder and director Blair Nicholl said it had been a tough decision to place the company in liquidation.
“Personally, myself and the directors are absolutely gutted that we couldn’t find a way to keep the business operating in its current form,” he said.
“We put everything we had into building this company and are incredibly proud of what the team achieved.”
The directors of the company are Nicholl, Ricardo Reis, and Kate Whiting.
Nicholls said they had eight staff and “employee entitlements are continuing to be worked through as part of the liquidation process”.
He clarified to Hawke’s Bay Today on Wednesday that a new owner would acquire certain assets, intellectual property, and brands from the company, in a potential sale, but would not continue trading as The National Distillery Company Ltd (which is in liquidation).
Nicholls said the prospective purchaser was working through a due diligence process.
“Ultimately, the process is being managed by the liquidators, but we are hopeful that a successful transaction will preserve the brands and maximise returns to creditors.
“The debt position developed over several years and was the result of a combination of factors rather than any single event.
“Despite extensive efforts to restructure and secure additional capital, the business ultimately reached a point where voluntary liquidation was the most responsible course of action.”
A sign has been put on the distillery’s front door: “Closed until further notice – many apologies to our many loyal customers”.
The company’s website has also been taken offline in the meantime.
Creditors are invited to make a claim.
Following Cyclone Gabrielle in 2023, the company distilled a special gin, which it called Cyclone Recovery Dry Gin, donating 80% of proceeds to help people affected by the cyclone.
The company leases its building rather than owning it.