It has hit a range of businesses, from tourism to hospitality.
In a statement, Miller Creative Group managing director Keith Cooper said the company had called in liquidators.
The group operated from offices in Dunedin, Christchurch and Auckland, servicing predominantly the retail sector including tourism-related shop fit-outs.
It began to feel the effects in early February, when several customers cancelled orders.
The drop in business continued throughout last month.
‘‘Then, over the weekend, the world changed dramatically, and particularly in our sectors of tourism, food and beverage and retail,’’ MrCooper said.
‘‘This has resulted in around 10 projects or quotes cancelled in the past few days, meaning we have virtually no work ahead of us and in view of the worsening crisis and our adviser’s view of the economic outlook, there is no credible chance of work eventuating in the foreseeable future.’’
Mr Cooper said the company reviewed the Government’s aid package, but based on employee numbers, the partial assistance for wages would only last five weeks until the cap was reached.
‘‘In view of the outlook and the fixed costs of operating the business, the directors had no option but to appoint liquidators effective immediately.
‘‘This has been an incredibly difficult conclusion to come to but was inescapable and we deeply regret the impact this will have on our staff and families.’’
Iain Nellies, of Insolvency Management Ltd,has been appointed liquidator.
After 15 years, Octagon business Seriously Twisted Merino is also shutting up shop.
Owner Linzi Irving said a drop in revenue from a loss of foot traffic during the partial closure of the Octagon earlier in the year had left her business without enough reserves to weather the coronavirus effects.
‘‘It’s been a perfect storm for us,’’ Ms Irving said.
She also had a possible buyer for the business until three days ago, when the buyer’s accountant advised them against purchasing it because of the present economic situation.
Ms Irving said she had since notified staff that the shop would be closing on March 31. She believed the situation would be similar for many Octagon businesses. Some had told her they had not made a sale all day, and that had happened for several days in a row. ‘‘It’s going to be huge.’’
The Cobb & Co Dunedin restaurant has also permanently closed its doors.
It confirmed the news in a social media post, and thanked staff and customers for their support.
It has been operating at the Dunedin Railway Station since 2017.
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Comments
And so it begins, hang on to your hats people and stay safe!
The business paradigm has changed fast and permanently. The market MUST adapt very quickly. The virus itself is the least of our problems. We are facing overwhelming attacks on three fronts:
1. The virus, attaching our health, and needing a well informed clinical response.
2. Mass hysteria and panic, which needs sound political leadership in a time where there is none.
3. The economic destruction, caused by the panic and the lack of political leadership.
If our small businesses are allowed to fail, there will be no jobs, no taxes, and no momentum when the public health situation is resolved. All that will be left is fat politicians (safe until September), fat bankers (sitting on locked in lending portfolios), and fat landlords (with locked in leases).
We need the government advised by experienced small business consultancies before setting bailout policies. And we need to keep these small businesses alive. Most of us work for them.
The billions of handouts to welfare recipients in the middle of this crisis is of zero economic benefit to the parts of the system that are failing, but massive political benefit in pre-September electioneering.
It's more of your type of comments that need to be voiced to our politians John. It's for that very reason I feel TESTING is so important. To at least offer some certainty to the working public and maintain some fabric to our economy. And yes, as you atate and I have mentioned in other comments, TAXES need to be paid to continue in some way or form. Secondly, Widespread TESTING would give some sort of certainty to the public and potentially reduce the impacts to our health system.
Business needs to speak out.
Very sad. Where are you hidding Major Hawkins and why are you not helping us?
He’s a Greenie so knows nothing about business other than it is killing the planet. Same goes for the Jacinta et al.
Trump did a good thing. No foreclosures or evictions allowed. Mortgages can be extended over time at little cost with today’s interest rates which government could cover for a couple of years where needed. Debt and liabilities are the stressors that kill businesses experiencing ‘short term’ disruptions.
No one is going to step into these sites and start something new in this climate so much better to freeze the status quo until the new economy is clear. That will stop the carnage caused by panic.
Deserting businesses that create jobs and provide services will only amplify the impact on wage and salary people. Playing Labour’s base will waste the economic advantage they inherited.
Ideological bunch, using pandemic to have a go.
Academic if it goes to #4. What you do then is follow police instructions.