Astle’s staff owed more than $100k
Buyers are lining up to take over high profile restaurants owned by besieged chef and businessman Tony Astle.
The prospect of new ownership holds out hope for staff at the Christchurch eateries who are owed $107,000 in wages and holiday pay.
The two companies behind Astle’s King of Snake restaurant in Victoria St and Universo in the Christchurch Art Gallery went into voluntary liquidation on August 31.
Liquidator’s reports released late on Friday show workers at King of Snake are owed $68,000 and staff at Universo $39,000.
The two companies and several other Astle entities, which went into liquidation at the same time, owe creditors more than
$1.3 million including $300,000 GST.
Unsecured creditors of King of Snake are owed $300,000 (secured creditors, $85,000) and of Universo, $250,000 (secured creditors,
$275,000).
Secured creditors have registered charges or mortgages over assets of the companies.
Liquidator Brenton Hunt, of Insolvency Matters, said he was dealing with strong interest in both restaurants.
He already had a conditional offer on King of Snake and would be talking to four or five parties interested in Universo.
‘‘I’m very comfortable with the way negotiations are going,’’ he said.
The potential sales meant workers could be hopeful they would be paid, he said.
The Christchurch City Council was very keen for a good tenant to replace Astle at the Art Gallery.
‘‘They want someone who will run a cafe and a restaurant. So they are very keen to talk to anyone wanting to buy the business.’’
One issue prospective buyers would want to confront was catering for official functions put on by the Art Gallery. It appeared Universo had missed out on that business in the past, he said.
Meanwhile attention is shifting to Astle’s new bar/bistro on Oxford Tce to be called Chiwahwah. Builders, who have about a month of work left to finish the job, have vacated the site and are waiting for more information before they continue.
Property developer Antony Gough, who owns the Terrace development, has been working hard behind the scenes to secure backing for Chiwahwah.
He has previously said he and Lion Breweries would fund the completion of the fit-out and that Astle would run it.
However, yesterday he was pulling away from Astle being the operator. ‘‘It will open one way or another,’’ he said.
‘‘But at this stage it’s not certain how things will pan out for Tony.
‘‘Obviously he is a bit short of cash but whatever happens it will open one way or the other. It’s a bit sad for Tony because he is a very good operator.
It was still his preference that Astle would run Chiwahwah, he said.
If Lion Breweries pulled out of funding the opening of the new bar, he would not bankroll it on his own, he said.
‘‘There are quite a few in the market ready to step in to run it. We’re coming into a good time to open.’’
Other operators in the development were keen to see Chiwahwah open but had not been putting pressure on him, he said.
‘‘The more complete we can make the place the better. All the tenants have had some help from the landlord.
‘‘That’s the reality of this day and age. They are trading very well. The Terrace is a very strong brand and it’s been well supported.’’
Hunt said he was not directly involved with Chiwahwah as it was not in liquidation, but it was relevant.
‘‘There will be inter-company advances that will need to be looked at and where the money has gone and why it has gone.’’
‘‘I’m very comfortable with the way negotiations are going.’’ Liquidator Brenton Hunt