Super Liquor cuts ties with second Canterbury franchisee, following Stuff reporting
Friday, 6 March 2020
A national liquor store chain will cut ties with a second major franchisee in as many months, after Stuff revealed the owners hadn't properly paid staff employed by another of their businesses.
Super Liquor Holdings will not continue its franchise agreements with Karman Enterprises Ltd and Big Daddys Ltd, companies controlled by Hardeep Singh and his wife Gauravjot Kaur, which were due for renewal on August 31.
The companies have 'mutually agreed' to part ways on April 9, Super Liquor Holdings chief executive Campbell McMahon said on Friday.
McMahon and Singh declined to comment about why the franchise agreements would not be renewed.
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Karman Enterprises and Big Daddys own 10 liquor stores carrying Super Liquor branding in Canterbury.
Stuff last month revealed Kenny Omen Limited, a restaurant company controlled by Singh and Kaur, had failed to pay three staff wages and holiday pay totalling $50,000 over several years.
The Labour Inspectorate received complaints alleging another of the couple's companies had not properly paid staff, but they could not be progressed as no-one was prepared to make formal statements.
Super Liquor Holdings last month cut ties with another major Canterbury franchisee, Nekita Enterprises Ltd, a company controlled by Harjit and and Shereen Singh, after the Labour Inspectorate found it had paid several employees less than the minimum wage.
Nekita Enterprises owned 15 liquor stores in Christchurch, Methven and Ashburton, making it arguably Super Liquor's largest franchisee nationwide.
Debranding of those stores, except Super Liquor Brighton, in Beresford St, which recently sold, will be completed by March 27.
On Friday, Super Liquor signage was removed from a Wigram liquor store, which was owned by Nekita Enterprises.
Sources say the Singhs are in the process of rebranding their stores under the name Canterbury Liquor.
Companies Office records show the couple are joint shareholders of Canterbury Liquor Ltd, which was incorporated on February 28.
Harjit Singh, who is the sole director of the new company, declined to comment about the rebranding of his stores or the treatment of his staff.
Stuff previously reported the Singhs were granted building consent for a mansion in Hills Rd, Mairehau, while Nekita Enterprises was investigated by the Labour Inspectorate last year.
Plans for the six-bedroom, 1200 square-metre home, which would cost an estimated $9 million to build, include an indoor swimming pool, a gym, a sauna, a cinema, an underground wine cellar and a tennis court. Construction has yet to begin.
Hardeep Singh and Gauravjot Kaur are part way through building a similarly lavish mansion on the outskirts of Christchurch.
The loss of two major franchisees will come at a significant financial cost to Super Liquor Holdings, which has about 150 stores nationwide.
Franchise fees for the 25 stores the liquor tycoons owned is thought to total well in excess of quarter of a million dollars each year.
McMahon didn't address a question about what the shortfall would mean for the company.
'We continue to have a strong and comprehensive network of Super Liquor stores across Canterbury, ensuring our customers can still enjoy the Super Liquor retail experience,' he said in a statement.
Stuff's reporting on the treatment of staff by the companies connected to Harjit and Hardeep Singh sparked a call for change from Labour Inspectorate regional manager Callum McMillan who said licensing authorities should take into account treatment of employees when granting liquor licences.