Craft chocolate maker Ocho is seeking voluntary liquidation with the probable loss of 11 jobs as it faces a grim financial outlook.
Ocho started in 2013 as a small craft chocolate company before being relaunched on the back of a $2 million crowdfunding campaign led by Jim O'Malley following the news Dunedin's Cadbury factory would close in 2017.
It has since struggled with profitability despite another crowdfunding campaign.
The company's board said staff and shareholders had been told today the company was "unable to trade out of its current financial situation and has no prospect of achieving future profitability under the current business model".
Ocho board chairman Peter Lead said the company was solvent and could continue to trade "for a short period of time".
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The board hoped that winding up the company would allow the business to be sold as a going concern.
The decision had not been taken lightly and Ocho's 11 staff would continue to be paid until a liquidator was appointed.
Ocho founder Liz Rowe said in the statement she was sad to hear of the board’s decision.
“The crowd funding in 2017 and the support from so many people who bought shares in Ocho was exciting and humbling.
"However, the company structure set up hasn’t proved to be the easiest model to work with. In essence, there was a big company structure being managed by a very small staff.
“Combine that with a commitment to buy cocoa beans direct from the farmers and an uncompromising approach to making the best quality craft chocolate and, with the benefit of hindsight, it’s not hard to see there were some challenges for the company from the start.”
