Burger Burger continues trading after receivership as rescue plan begins

An Auckland insolvency practitioner in charge of the trading arm of popular six-store North Island Burger Burger chain says he plans to continue operating all the outlets and hopes to save 80 part-time and fulltime jobs.

Gareth Hoole, of Ecovis KGA, was appointed voluntary administrator of BurgerBurger Ltd and BurgerBurger IP yesterday by director Marina (Mimi Gilmour) Buckley.

Hoole said he wanted to reassure customers that five of the six shops were open, food would continue to be served and fans should stay loyal.

“Keep visiting,” Hoole pleaded, saying no closures or redundancies were planned at this time.

“The message I want to deliver is it’s business as usual. We’re working closely with the management, which includes Mimi Gilmour and all her team. We have the support of the ASB bank.”

Yesterday, the Herald revealed the burger chain’s holding company, BurgerBurger Holdings, had been placed into receivership.

Waterstone’s Adam Botterill and Damien Grant were appointed receivers of that business on Wednesday by Beach Road Holdings.

BurgerBurger Holdings (in receivership) is the shareholder of the two businesses that are in administration.

The holding company has 11 shareholders, the largest of which is SMB Investment Trustee – Gilmour and Stephen Buckley’s trustee business – which has a 57.95% stake. Other large shareholders include Morrow 1 Limited Partnership, which has 17.04% and Adrian Chilton with 13.83%.

The chain has stores in Ponsonby, Commercial Bay, Torbay, Takapuna (currently closed and being refitted), Hamilton and Tauranga.

Hoole acknowledged BurgerBurger Holdings had been put into receivership by a landlord of the Torbay store.

“But the trading company and the IP company are now in administration, under my control with Ray Cox,” Hoole said.

“The administrators intend to continue to trade the businesses with a view to putting together a rescue package which will allow the businesses to continue in the future or seek a buyer,” Hoole said.

The voluntary administration regime was aimed at rehabilitation, not closure of a business, he said.

The first report on the administration, detailing how much is owed and what assets the businesses have, would not be released for about a fortnight, he said.

“Our focus is to keep the staff, suppliers and landlords informed so we can keep trading while we work out a rescue plan or seek out a buyer for the business,” he said.

“Closure of the stores would be a last resort,” Hoole added.

“The administration is focused on saving businesses rather than an immediate closure,” he said.

Hoole’s goal was particularly to attempt to preserve jobs, because the company employs about 80 staff, he said.

He hopes customers will keep returning to the five stores that are open.

“I’m calling on all the Burger Burger customers to make efforts to keep this business alive.

“We want to try to save jobs. It has been profitable. It makes money, but it had got itself into some difficulties because the sector is very challenging right now,” he said.

The first receiver’s report is due in August.

Damien Grant, one of the Waterstone receivers, acknowledged that the trading company could continue.

“I’m going to pop down to Burger Burger at Commercial Bay and I hope to see Gareth flipping the burgers.

“I’m sure under his management, the burgers will get five stars,” Grant said.

Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.