The Weavers Retreat Restaurant in Mosgiel has been placed in voluntary liquidation owing more than $477,000, and it is "unlikely" that any of the 29 unsecured creditors will recover any money.
The restaurant was placed in liquidation on November 11 by 50:50 shareholders Neville Martin and Jamie Smith, the latter being the company's sole director, after the business ceased operating about mid-October after a decline in turnover.
Following liquidation, Iain Nellies, of Insolvency Management Ltd, said in his first report there was no stock of saleable value and all the assets were secured to several secured creditors under 10 general security agreements.
So far, there were seven known preferential creditors and 29 unsecured creditors, Mr Nellies said.
"It is unlikely that there will be a dividend to the creditors in this liquidation, given the size of the preferential debt," he said, noting the final figure was yet to be confirmed.
The total amount owed is estimated at $477,739, with seven secured creditors including the ANZ bank owed $215,139, preferential creditors IRD and six employees $137,751 and unsecured creditors $124,849.
The company was incorporated in October 2003.
The liquidation is expected to be completed by March.
