Thu Sep 19 05:39:56 UTC 2024: ## Auckland Restaurants Face Closure as Liquidators Reveal $700,000 Debt
**Auckland, New Zealand** – Three popular Auckland restaurants, Grangers Taphouse and Kitchen, Marina Cantina, and The Franklin, have gone into liquidation, leaving behind a debt of over $700,000 to creditors. The news comes as the hospitality industry continues to struggle with the lingering effects of the COVID-19 pandemic and the rising cost of living.
Liquidator Grant Reynolds of Reynolds & Associates cited a combination of factors for the companies’ demise, including historical cash flow issues stemming from the pandemic, rising ingredient costs, lower sales due to the cost of living crisis, and increased employee costs, including minimum wage hikes.
The situation was exacerbated for Grangers and Marina Cantina by a landlord dispute. The landlord chose not to renew the leases for the restaurants, despite no default by the companies, and instead granted them to another operator. This forced the companies to sell their businesses to the new lessee, resulting in a pre-liquidation arrangement with Inland Revenue falling into default.
The Franklin Limited, meanwhile, ceased trading before liquidation after selling its business to a third party.
While the sale of the businesses allowed secured creditors to be paid, the Inland Revenue is owed a total of $541,293 by the three companies, and unsecured creditors are owed a further $193,828. Notably, no money is owed to staff.
The liquidator’s reports indicate that the proceeds from the sales of the businesses were not sufficient to repay all creditors in full.
The news comes amidst a wider trend of hardship in the hospitality industry. A recent Restaurant Association survey revealed that 78% of Auckland businesses and 76% nationwide reported a decline in revenue compared to the previous year. This decline is attributed to lower tourist numbers and consumers tightening their belts.
The future of the Grangers and Marina Cantina locations is uncertain, with the new owner confirming plans to redevelop the sites, although no timeframe for closure has been provided.
The liquidations of these well-known restaurants highlight the challenges faced by the hospitality industry in the current economic climate. It remains to be seen what the long-term impact will be on the Auckland food scene.
First Piper 