Jonathan Lyons said the ongoing costs of running Copper on Highgate, which he bought in July last year, factored "100%" into the decision to liquidate his company.
The cafe stopped trading in mid-April.
"If we hadn’t have bought Copper, I would have made $100,000 profit this year."
Kingston HQ Ltd was placed into liquidation this month by shareholder resolution, with Bryan Williams, of BWA Insolvency, appointed liquidator.
The liquidator’s first report, released this month, said the company owed $490,746.84.
Among those left out of pocket were at least five Dunedin businesses and the previous owner of the cafe, who estimates he is owed $35,000.
The company also owned The Kingston Flyer Cafe and Bar, near Lake Wakatipu, which closed earlier this month.
Mr Lyons said the cost of wages and goods sold meant Copper was not doing the numbers necessary to be sustainable.
The price for coffee beans rose nearly 40% this year, and customers had not been willing to pay the increased price of coffee.
"We just couldn’t even break even, we were losing so much money.
"About $20,000 a month we were losing and I personally went out of my own personal life savings, so we weren’t able to continue operating once I’d spent my life savings and now I don’t have anything."
They had "desperately" tried to sell the business, with no luck.
The company was going through the insolvency process and it was his intention to make good on all of its obligations, Mr Lyons said.
"I appreciate that there’s some of the creditors, they want their money, and I get that, I fully understand it.
"It wasn’t my intention to lose my entire life savings into a business that we were trying to make work, but, unfortunately, that’s where we’ve ended up."
Keeping their businesses open was not a viable option, the report said.
"All avenues to restructure or recover were explored without success, leaving no viable option other than liquidation."
Former Copper on Highgate co-owner Nat Lim said he was among the unsecured creditors owed money, and estimated he could be out of pocket $35,000.
Mr Lim and his wife owned the business between 2020 and mid-2024, and after selling it made a deferred payment to Mr Lyons to help with renovating the premises and getting it up and running quickly.
He was "disappointed" to learn the company had been placed into liquidation.
"I think it’s put a lot of people in a spot, unfortunately."
