Former Tauranga city councillor Andrew Hollis incorporated Guardians of Gold on September 3, 2024, taking over operations from an existing bullion trading business.
The company sold gold and silver bullion to customers, bought second-hand bullion and scrap jewellery, and operated three retail stores nationwide, including one in Tauranga.
Hollis was the sole director and shareholder.
The company was placed into voluntary liquidation last August 29.
Paul Manning and Thomas Rodewald, of BDO Tauranga, are joint liquidators. The liquidators’ first report listed 85 known creditors, most of whom were individuals.
Receivers Damien Mitchell Grant and Adam Stevenson Butterill, of Waterstone Insolvency, were appointed on September 2.
A second liquidators’ report on March 1, revealed there were 45 unsecured creditor claims to date, totalling $388,150.77.
The receivers said Guardians of Gold owed Mayfair Finance $250,420 as of October 16. Inland Revenue filed one preferential claim totalling $33,861.33.
The amount owed to Inland Revenue in penalties and interest was unknown, as the liquidators’ report stated no formal claim had been received.
Receivers for failed Guardians of Gold Ltd will seek inventory ownership directions from a High Court judge in Tauranga on May 25. Photo / NZME
On February 13, the receivers filed an application in the High Court at Tauranga seeking directions on the ownership and treatment of bullion inventory held by Guardians of Gold at the time of receivership and liquidation.
The matter’s first call will first be heard in the judge’s chambers on May 25 in the same court.
Waterstone in-house counsel Brooke McLeish told the Bay of Plenty Times the May 25 proceedings were a preliminary hearing.
She said the receivers were seeking guidance under the Personal Property Securities Act, the General Security Agreement (GSA), the Contract and Commercial Law Act, and the Secondhand Dealers and Pawnbrokers Act.
McLeish said not all Guardians of Gold customers were parties to the receivers’ application.
It related to 34 unsecured creditors who disputed ownership of inventory under the GSA, with an estimated total value of $250,000.
“The exact value of the inventory has yet to be determined, and the next receivers’ report is expected next month,” she said.
Liquidators’ latest report
Preferential creditors included employees owed an estimated $12,773 in holiday pay, and the Inland Revenue sought about $34,600 in unpaid PAYE.
Preliminary accounting recordings showed an overdrawn shareholder current account of $86,750.58.
The estimated value of plant and equipment has been withheld to avoid prejudicing any future sale.
As of March 1, funds on hand were $26,190 and payments, including legal and liquidation costs, totalled $16,393, the report said.
The liquidators stated they intended to liaise with the receivers regarding the handover of residual funds, assets and records, and realise any remaining assets after the receivers’ retirement.
Other proposed actions included reviewing potential voidable transactions, pursuing debtor and retention balances, and recovering related-party debts.
They also proposed distributing any available funds to preferential and unsecured creditors and assessing other potential recovery avenues.
The report said it was not yet practical to estimate when the liquidation would be completed.
Anyone wishing to attend the May 25 hearing must file a notice of appearance with the High Court at Tauranga by May 18.
Hollis declined to comment.
Sandra Conchie is a senior journalist at the Bay of Plenty Times and Rotorua Daily Post who has been a journalist for 25 years. She mainly covers police, court and other justice stories, as well as general news. She has been a Canon Media Awards regional/community reporter of the year.