Trevor Laing and Emma Laing, of Laing Insolvency Specialists, were appointed joint and several liquidators last month of Baby Divine Ltd. The sole director and shareholder was listed as Kimberly Ellen Cross.
In their initial report to creditors and shareholders, the liquidators said the company was incorporated in 2015 for the purpose of buying baby and children’s clothing and accessory retail business that was trading as Baby Divine. The retail store operated from leased premises in the Dunedin Centre City Mall as well as having an online store.
The director/shareholder had advised that Covid lockdowns negatively impacted the business turnover and major roadworks, in the direct vicinity of the store for a significant time period, had caused parking and access to become very difficult. Those issues resulted in a significant drop in foot traffic and downturn in turnover.
After seeking expert advice, the director made the difficult decision to place the company in liquidation. The company assets consisted of stock and some limited plant such as retail display units and the value was yet to be established.
There was one registration recorded on the Personal Property and Securities Register which appeared to relate to security over stock supplied.
The liquidators had been advised the company had Inland Revenue Department liabilities relating to recent GST returns, the exact amount of which was being confirmed. All employee entitlements had been paid prior to liquidation.
At this stage, the liquidators were aware of 17 unsecured creditors who were owed an estimated $146,000.
Indications were that, due to the limited assets available, it was not expected a dividend would become available to unsecured creditors. A further or final report would be prepared and distributed within the next six months.
