Four Square store reopens in receivership

A Four Square in Auckland was tipped into receivership on Christmas Eve — but the store has reopened under an acting manager and will be put up for sale as a going concern in the new year.

David Bridgman and Craig Sanson, of PwC, were appointed receivers for BK's Four Square in Torbay on December 24, but had the doors open again by Boxing Day.

Bridgman says PwC is still in the early stages of establishing how much money is owed by owner-operator Sagar Patel, who has now been replaced by an interim manager.

But Bridgman says the business is healthy, with weekly revenue and other metrics that compare well with other Four Squares.

It ran into trouble because Patel had “somewhat unrelated” financial difficulties that impacted the business. Bridgman did not want to comment further on the nature of the franchisee's business problems. Patel did not immediately return a request for comment.

Four Square stores are run as franchises under the umbrella of Foodstuffs, which also includes New World and Pak'nSave. Bridgman says Foodstuffs is BK's main creditor.

A former Four Square owner who now works for Foodstuffs was drafted in as acting BK's manager, allowing the store to reopen immediately after Christmas. Bridgman says it's business as usual. The half dozen staff have kept their jobs. He's confident of selling the business as a going concern.

However, it won't be put on the block immediately. Bridgman says PwC will wait until the holiday quiet period ends.