Business failing but bosses still driving luxury cars
The owner of a troubled beauty and hairdressing chain that has received nearly $450,000 in wage subsidies wants breathing space as he and his wife drive around in cars worth about $300,000.
Mathew Docherty and his wife Diane own 11 hair salons and beauty clinics (four hair salons, seven beauty clinics) in Christchurch, Timaru, Dunedin and Nelson through companies SKT Salons and Sun Kissed Tan.
After months of financial difficulties, Docherty suddenly shut the chain last week telling staff not to come to work. At meetings on Friday he told beauty clinic staff, some of whom are owed weeks of wages, he would pay them on Friday if they came to work this Monday. He announced the hair salons would close.
Docherty, 39, and his wife own three cars either individually or through their company Sun Kissed Tan: a black 2019 Ford Mustang GT, a 2021 Porsche Macan and a 2020 Mercedes AMG. The Mustang is for sale on Trade Me with a starting price of $105,000.
The chain went through a rapid expansion in 2020 and 2021. At the same time Docherty and his wife bought a house in Casebrook, in north Christchurch, now valued at $1.3 million.
On Friday, Docherty told Stuff neither staff nor creditors would be left out of pocket. However, one of his landlords who was owed three months’ rent on a Christchurch salon was sceptical.
‘‘I wouldn’t put any stick in his promises of payment,’’ she said.
Two other landlords also told Stuff that Docherty was behind on rent. One landlord said he had rented Docherty premises but due to a six-month rent-free period and other fees, he had received only one month’s rent.
Docherty said on Monday, six of his seven beauty salons were open and staff would be paid for the previous week on Friday. He said he was trying hard to save his beauty business and had put his Mustang up for sale to release some cash. The other cars might be sold depending on advice, he said.
‘‘It’s a challenge but the beauty side of business has also been profitable.’’ He said salon staff would not receive any redundancy payment.
He was moving out of his head office in Homersham Pl, Harewood after reaching ‘‘terms’’ with his landlord, he said.
Sun Kissed Tan received $441,000 in Covid wage subsidies from the Ministry of Social Development in various instalments for between 10 and 46 staff.
Docherty said the company had been investigated after a complaint and been cleared.
Docherty is no stranger to business troubles. He previously owned a failed wrestling promotion business, has featured on the television programme Fair Go several times, and has had Employment Relations Authority decisions go against him.