They were once the darling of the custard square set.
South Canterbury-produced Denheath Desserts treats were arguably New Zealand’s most famous custard squares prior to the company going into liquidation last year.
But attempts to sell the business have failed and the liquidator has instructed Turners to inspect the company’s assets with a view to selling them, the latest liquidator report said.
In August last year, the official assignee was appointed liquidator of Denheath Corporation and unsecured creditors were owed more than $500,000. Reasons cited included Covid, insufficient capital, economic conditions, retail compliance costs, export issues and costs.
In a six-month report, the liquidator said a number of parties expressed interest in purchasing the company’s business. Confidentiality agreements were entered into and negotiations began.
Some potential purchasers inspected the company’s assets, excluding IP, but the parties withdrew their offers over time. No further parties have expressed an interest in purchasing the assets, including IP.
The liquidator was waiting for an assessment from Turners. The assets were secured by the bank and there would be no funds available for unsecured creditors.
Meanwhile, no wholesale or retail suppliers made an offer for the stock available at the time of liquidation. The stock was stored at the company’s premises and one freezing unit broke down and damaged the stock. While the liquidator was attempting to sell the remaining stock, another freezer broke down and destroyed the remaining stock.
The liquidator was investigating a possible overdrawn shareholder current account and considering next steps. They would also complete a full investigation into the company records to determine if there were further assets to be realised or any irregular transactions to be clawed back. It was expected that investigation would be completed within six months.
The company’s directors are Donald and Lisa Templeton who took over the business from Mrs Templeton’s mother in 1999. She had previously bought Denheath House in Pleasant Point and the custard square recipe in 1996. Manufacturing was later moved to Timaru.