Camerons Clothing Ltd owes about $900,000 to nearly 100 creditors and some are unlikely to get their money back, a liquidators report has revealed.
The clothing store, which operated in Oamaru, Waimate and Timaru, was placed into liquidation late last month by its shareholders, who cited the effects of Covid-19 on the trading of the business and the public’s changing buying habits.
Iain Nellies, of Insolvency Management Ltd Dunedin, was appointed liquidator and in his report said it was unlikely unsecured creditors would get their money. Yesterday evening, the company’s first liquidation report was filed on the Companies Office website, which found Camerons Clothing owed $908,000 to 92 creditors.
Of that, just over $663,000 was owed to secured creditors.
The report listed multiple clothing brands, such as Adidas, Swanndri, Rip Curl, and the Bank of New Zealand as secured creditors.
Preferential creditors — which were owed $55,000 — were listed as Inland Revenue and the company’s staff.
Although the company’s total assets were not known, the report’s statement of financial position showed that Camerons Clothing was owed about $36,000 in accounts receivable.
It had $5000 worth of plant, the report said.
The liquidator was also aware of various stock, plant, equipment, and vehicles owned by the company, some of which were subject to specific security interests, it said.
Based on the information available, it seemed unlikely that there would be money left over for unsecured creditors.
Secured and preferential creditors, such as employee claims, certain IRD claims and hire purchase contracts would take priority.
"However, until the records of the company have been examined and investigations into the company’s affairs have been completed this will not be confirmed," the report said.
It was expected that the liquidation would be completed by late December this year.
The next report was due in September.
