Duke’s creditors left $400k short
The liquidation of Duke Carvell’s has left creditors of the former Wellington restaurant owed close to half-a-million dollars.
Formerly owned by the Bresolin brothers, the bar and restaurant near Cuba St was sold to Michael Cole in July 2015, but it closed its doors in March when liquidators were appointed.
The final liquidator’s report showed claims totalled $473,486.
Kiwibank was owed the most. However, liquidators received close to 50 claims, including 35 from unsecured creditors.
Liquidators Jessica Kellow and Iain Bruce Shephard of Shephard Dunphy wrote in their final report that the well-known restaurant failed because of a fall in sales.
The report said Cole bought the business to utilise his hospitality experience and because of his love of the Duke Carvell’s restaurant.
‘‘Despite attempts to minimise staff costs and increase sales, the cashflow did not recover sufficiently to enable the business to continue to trade.’’
The report said there was not enough money from the liquidation to cover debts owed to secured or preferential creditors.
Kiwibank, as a general security holder, received a distribution of $38,000; however, the report says the bank is still owed more than $300,000.
The liquidators also received a preferential claim from the Inland Revenue Department of more than $50,000. Four employees filed claims totalling more than $11,000, while a number of other employees opted not to submit claims, the report said.
The claims of 35 unsecured creditors totalled $108,426.
While Shephard Dunphy investigated whether to pursue Cole for the outstanding money, the report concluded there was no point.
‘‘In reality, the director had no personal wealth even if such a claim was successful,’’ it said.
Given the high profile of the restaurant and its prominent location, there were significant expressions of interest in its assets, which the liquidators offered for sale within the industry. The landlord leased the Swan Lane premises to Noble Rot Wine Bar, with the liquidators selling the remaining assets to the new tenant for $57,500.