Partners’ fallout ended Car Giant

A STOUSH between business partners at Car Giant, which claimed to be New Zealand’s first car supermarket, ultimately led to the Petone company’s collapse.

Inland Revenue applied to put the business into liquidation in July, with the High Court in Wellington appointing Jeremy Morley and John Fisk as liquidators on September 8.

Their first report, published this month, says there had been a fallout between business partners that created issues with control and management of the company and it effectively ceased to trade.

Car Giant had boasted about being the largest one-site car sales operation in Australasia.

Following the fallout the company’s secured creditor, a vehicle importer, exercised its security, seizing cars from the site. This left the business with no stock and it effectively ceased to trade in May 2015, the report said.

A preferential claim was received from the Inland Revenue for $159,833 for outstanding GST, income tax and PAYE deductions.

At the date of liquidation the company’s assets consisted of a vehicle, computers and office equipment. The liquidators were not aware of any outstanding obligations to employees.

According to the Companies Office, Graeme Farr is the sole director and shareholder of the business. He is named as a creditor in the report.

Farr has claimed he resigned from the business about two years ago and agreed to stay on until a new director was appointed.

A notice on the Car Giant website says Car Giant Ltd was 100 per cent owned by United States-based Alex Knowles.