A Christchurch takeaway and restaurant business with sushi outlets under the Hachi Hachi brand has folded while owing staff holiday pay and a hefty tax bill.
The seven companies, owned by Hachi Hachi founders and directors Titi Khemarangsan and Bundit Kijpalakorn, were placed in voluntary liquidation on March 25.
Initial liquidator reports for the businesses amounted collectively to a total estimated shortfall of $2.54 million, including $1.37m owed to Inland Revenue (IRD) in income tax for employees’ wages (PAYE) and goods and service tax (GST).
This included nearly $130,000 in holiday pay owed to out-of-pocket staff.
The liquidator noted the IRD had begun recovery action with the directors placing the companies in voluntary liquidation after seeking professional advice.
The eateries had struggled through Covid-19 lockdowns with trading slowing the past year.
Bush Inn Sushi House Ltd, operating as Hachi Hachi at the Bush Inn Shopping Centre, had the largest money owing after trading was ceased last month.
A total estimated shortfall to all creditors of $890,000 included staff holiday pay owing $97,000 and IRD seeking GST and PAYE payments of $500,000.
Coca-Cola Amatil (NZ) Ltd and the Bank of New Zealand were secured creditors with 16 businesses or agencies among unsecured creditors.
Spice Paragon Victoria Ltd closed a restaurant traded under the name Spice Paragon in January 2024 when an attempt was made to surrender the lease with the landlord on Victoria St. An estimated $700,000 total shortfall included IRD being owed $400,000 and unsecured creditors $300,000.
A Hachi Hachi Cashel Ltd cafe, which stopped trading as Hachi Hachi last month on Hereford St, had the same reasons placed for insolvency.
Staff working at the cafe were owed an estimated $30,000 in holiday pay, while IRD was seeking about $350,000 with unsecured creditors owed $200,000 for a total estimated shortfall of $573,000.
Victoria Sushi House Company Ltd wound up its restaurant trading under the Hachi Hachi brand on Victoria St in January 2024 when the lease was also surrendered to the landlord. The IRD was due $100,000 and unsecured creditors $150,000 for an estimated $250,000 total shortfall.
A Pad Thai Pan eatery under Good Brotherhood Ltd in the central city owed the IRD $500 and unsecured creditors $40,000. The business ceased trading in January last year.
Hachi Hachi Rangiora Company Ltd closed its Rangiora restaurant trading as the Smokehouse in January 2024 and owed IRD $20,000 and unsecured creditors an estimated $40,000.
Sushi Burrito NZ Ltd stopped trading as the Roll and Bowl at the same time, and is estimated to owe unsecured creditors $30,000 and IRD $2000.
Liquidator Brenton Hunt of Insolvency Matters has given creditors until April 25 to make a claim.
Mr Hunt was locating financial records and investigating claims and asset recovery for the businesses.
He was unaware of legal proceedings involving the company, as of the release of the first liquidators report.
Attempts would be made to sell some of the businesses as a going concern or retrieve money owed by the sale of plant and equipment.
