The application was made on behalf of Brian Oughton Ltd, an Auckland-based jewellery manufacturer claiming to be owed $23,000 by the 147-year-old family jewellery business.
Mr Young, who was present in court, told Associate Judge Tony Christianson he disputed the amount owed to Oughton and that several repayments in January had not been counted by the firm.
In November, he told the Otago Daily Times he was fighting to save the family business after a very quiet winter, and feared the store could close by mid-January unless Christmas sales were good.
The store, which opened in 1862, is believed to be New Zealand's oldest jewellery business.
Mr Young told Associate Judge Christianson sales had been good in December, but did not dispute the need for G&T Young to be placed in liquidation.
He did, however, dispute the amount owed.
He said payment plans put to Oughton had been rejected and returned stock and part payments made since December had not been credited.
On January 9, his buy-in group came to the store and took their stock because of concerns over the liquidation application.
Since then, he had had no stock and buy-in groups had refused to deal with him, so that had meant he was unable to pay his bills, Mr Young said.
Judge Christianson showed some sympathy to Mr Young's situation.
"It sounds a bit sad, Mr Young, but you appear to accept the inevitability that a liquidation will take your concerns off your hands. And it is about time it was taken off your hands I think."
He then ordered the company be placed in the hands of Dunedin insolvency and liquidation company Insolvency Management Ltd.
Mr Young could not be contacted for comment yesterday.
An application from South Canterbury Finance Ltd to have Grande Dunedin Ltd, Ro-Ro Investments Ltd and McEwan, the companies behind the failed redevelopment of the former chief post office in Dunedin, placed in liquidation was adjourned to March 2.
