Wagamama's liquidators tally the debts at more than $4.8 million
Sunday, 15 September 2019
Asian-fusion restaurant chain Wagamama collapsed owing more than $4.8 million, reports from its liquidators show.
The chain's four restaurants in Wellington, New Lynn, Silvia Park and Newmarket and their Auckland parent company owed about $1.8m to secured and preferential creditors including Inland Revenue and ANZ, and just over $3m to unsecured creditors who include former staff and small businesses.
Liquidators Steven Khov, Kieran Jones and Thomas Rodewald have not so far quantified any assets that could be used to meet the debts of the five businesses and said in each case it was 'too early to comment on any recoveries and the likelihood of a distribution' to creditors.
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They said they had been advised the chain failed because it had 'an unsustainable business model' and that several restaurants in the group performed below expectations.
Last month, Wagamama's British franchise owner offered Kiwi employees one-off payments totalling $30,000 to cover at least some missing wages and holiday pay.
The general manager of the Wellington restaurant, Soraya Edwards, had previously estimated that she was owed at least $6000.
While the payout was a welcome gesture, there needed to be more transparency over the liquidation process so workers could position themselves to claw back some of what they were owed, she said last month.