The dispute centres on a lease agreement between the $140million The Terrace development in central Christchurch, which had a delayed opening, and the owner of the Velvet Burger chain, which never opened in the development.
The Terrace Christchurch Ltd has applied to the High Court at Dunedin to have Velvet Burger Terrace Ltd put into liquidation. The hearing is scheduled for next month.
Velvet Burger's director is James Arnott. The 100% owner is hospitality company Cook Brothers International Ltd, not to be confused with Cook Brothers Group which is a separate construction company.
Mr Arnott is a director and shareholder of that company as well as of the two other holding companies which ultimately own Cook Brothers International.
Each Velvet Burger outlet is run as an individual company and neither Velvet Burger in Riccarton, Christchurch, nor any others around the country, are part of the proceedings.
Seeking court redress is The Terrace Christchurch Ltd, whose sole director and shareholder is Antony Gough, of Christchurch, who developed and owns the The Terrace in Christchurch's Avon River hospitality precinct.
Mr Gough did not return calls for an interview.
Mr Arnott said yesterday a lease had been signed with Mr Gough in about 2015.
However, he understood there was a "sunset clause" in the lease, which meant he could terminate the lease if the development was not ready for occupation.
"Yes, there's a dispute, but we've moved on [to the Riccarton outlet].
"My understanding is the lease is terminated, but he's trying to get rent out of us," Mr Arnott said.
He said his company, Velvet Burger Terrace Ltd, incorporated in March 2016, "had never traded".
There are six Velvet Burger companies, Velvet Burger Octagon, Velvet Burger Auckland, Velvet Burger Federal St, Velvet Burger Christchurch, Velvet Burger International and Velvet Burger Terrace, all of which are limited liability companies.
Stuff reported in December 2017 that most of the 17 hospitality operators moving into the riverfront The Terrace development were fitting out their premises at that time.
However, earlier delays meant the tenants would miss the Christmas trading period and were at that time planning to be open by February or March 2018.
When Mr Arnott was asked if the dispute could be settled before the appointed court date, he said he was "confident" no money was owed to Mr Gough.
Mr Gough began planning for The Terrace after the February 2011 earthquake to replace the row of restaurants and bars called The Strip on his Oxford Tce land. Construction began in 2013, Stuff reported.
