{"id":1777,"date":"2025-09-04T17:11:05","date_gmt":"2025-09-04T17:11:05","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/1777\/"},"modified":"2025-09-04T17:11:05","modified_gmt":"2025-09-04T17:11:05","slug":"lone-star-tauranga-owner-in-liquidation-as-former-staff-claim-thousands-in-unpaid-holiday-pay","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/1777\/","title":{"rendered":"Lone Star Tauranga owner in liquidation as former staff claim thousands in unpaid holiday pay"},"content":{"rendered":"<p class=\"VYEVUgvTMz\" style=\"display:none\">She said it was \u201cunfair\u201d for the business to withhold holiday pay entitlements.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cOur employer refuses to pay us what we are owed.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">She wanted to highlight the situation to warn others and \u201chopefully prompt the business owners to do the right thing\u201d.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">The Bay of Plenty Times agreed not to name the former staff, who left over six months for various reasons.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">They claimed they were collectively owed at least $16,000 in holiday pay, and that numerous attempts to engage with their former boss had been \u201cignored\u201d.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">The complainants said they learned, in a letter from the Donaghys, that the business would be offered for sale.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">One complainant said she was handed the letter two weeks after resigning.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cI felt very confused, blindsided. Jaqui never mentioned there would be any difficulty paying me what I\u2019m owed. And she ignored my repeated requests to sit down with her to sort the situation out.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">The letter laid out how \u201cdifficult\u201d trading recently had \u201ctaken a heavy toll\u201d on company resources, prompting shareholders to decide to sell.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">The letter said an administrator would be involved and the Donaghys had advice that employee entitlements \u2013 largely unpaid holiday pay \u2013 would need to be dealt with by the administrator.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">The employees were second on the list of preferential creditors. If a sale progressed, \u201cthe ability to be paid out\u201d would be part of the administrator\u2019s process.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cWe are sorry that we cannot be more definite about this aspect of matters &#8230; we are appointing an administrator [to] ensure the affairs of the company are conducted in strict compliance with the law.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">Two other complainants, who claimed they were each owed $5000, said they were \u201cextremely disappointed\u201d by how they were treated after being \u201cloyal employees\u201d of several years.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">Another former employee, who moved to Auckland for other work, said he was owed about $1000 in annual leave.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cIt makes me feel quite angry, because when I left, I had a little bit of money saved up to tide me over, but now it\u2019s almost all gone.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">Three of the group complained to Employment New Zealand, but were advised their employer stated they did not have the financial means to pay their \u201centitled final holiday pay\u201d at this stage.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">Employment NZ advised the complainants that if they wanted to pursue the matter formally, they could do so through the Government\u2019s free mediation service or via the Employment Relations Authority.<\/p>\n<p><img  alt=\"Lone Star Tauranga has been put into liquidation, but will continue to trade, with a new owner expected to take over. Photo \/ Sandra Conchie\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Lone Star Tauranga has been put into liquidation, but will continue to trade, with a new owner expected to take over. Photo \/ Sandra Conchie<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">However, the complainants said they believed mediation would be a \u201cwaste of time\u201d as earlier attempts to engage with the Donaghys failed.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cNow we are faced with having to hire a lawyer to try and get our own money back. It\u2019s gutting.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">Lone Star first opened in Tauranga in 1999 and is located on The Strand and the corner of Harington Street.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">The Donaghys have owned and operated the Tauranga branch since about <a href=\"https:\/\/www.nzherald.co.nz\/bay-of-plenty-times\/news\/taurangas-waterfront-growing-pains\/A3C6H3DIRPY55CVIRUA5ZN4JUE\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/bay-of-plenty-times\/news\/taurangas-waterfront-growing-pains\/A3C6H3DIRPY55CVIRUA5ZN4JUE\/\">2011.<\/a> <\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">Steiner said the Lone Star brand was proud to have a home in Tauranga and looked forward to continuing to serve locals and visitors.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cThe restaurant will remain open throughout the transition, with continued support from Lone Star\u2019s national team to ensure a seamless handover.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">He hoped the sale could be unconditional by the end of this week.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cIt\u2019s important the community knows we\u2019re not closing our doors. We\u2019re committed to maintaining business as usual and the transition to new ownership is already under way.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">He said that all staff would be retained as part of the transition.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cWe are working closely with BWA Insolvency and the purchasers to ensure continuity of employment and that staff receive their entitlements.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">Taahare Begum, Employment New Zealand labour inspectorate investigation manager, said two complaints relating to Lone Star Tauranga were investigated.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cBoth matters have been closed and currently there is no active investigation into the business.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">Begum said all employees must be paid holiday pay in accordance with the Holidays Act.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cEmployers may not withhold final pay or holiday pay at the end of an employment relationship.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">The Ministry of Business, Innovation and Employment encouraged anyone who believed they were unfairly treated in the workplace to contact its service centre.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">Bryan Williams, from BWA Insolvency, who was appointed the liquidator for Rycorlin Ltd on September 2, said he had not previously acted for the company nor provided any professional services.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u2033My pre-appointment involvement has been to consider the insolvent circumstances of the company and to provide information to the shareholders and the director as to how the company should deal with its circumstances through a formal state of insolvency&#8221;. <\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">He said options available to the company, at an earlier time, included the appointment of an administrator pursuant to the Voluntary Administration regime.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">\u201cDuring the liquidation, all known creditors, including ex-employees with unpaid entitlements, will be contacted as part of the liquidation process and provided with the documentation required for them to claim to the extent of their entitlements.\u201d<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\">Jaqui Donaghy was approached for comment.<\/p>\n<p class=\"VYEVUgvTMz\" style=\"display:none\"><a href=\"https:\/\/www.nzherald.co.nz\/author\/sandra-conchie\" rel=\"nofollow noopener\" target=\"_blank\">Sandra Conchie<\/a> has been a senior journalist at the Bay of Plenty Times and the Rotorua Daily Post 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.<\/p>\n","protected":false},"excerpt":{"rendered":"She said it was \u201cunfair\u201d for the business to withhold holiday pay entitlements. \u201cOur employer refuses to pay&hellip;\n","protected":false},"author":2,"featured_media":1778,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[806,138,2741,2740,189,78,2739,2736,111,139,69,2738,2744,1516,2737,1227,2742,2743],"class_list":{"0":"post-1777","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-as","9":"tag-business","10":"tag-claim","11":"tag-former","12":"tag-holiday","13":"tag-in","14":"tag-liquidation","15":"tag-lone","16":"tag-new-zealand","17":"tag-newzealand","18":"tag-nz","19":"tag-owner","20":"tag-pay","21":"tag-staff","22":"tag-star","23":"tag-tauranga","24":"tag-thousands","25":"tag-unpaid"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/1777","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=1777"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/1777\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/1778"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=1777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=1777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=1777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}