Liquor baron Harjit Singh shakes off rejection, strikes new deal
Tuesday, 12 May 2020
After being rejected by two of the biggest names in the liquor industry, embattled booze baron Harjit Singh has found an ally.
Stuff has obtained documents that show a dozen Canterbury bottle stores owned by Singh's business, Nekita Enterprises Ltd, which is under scrutiny for exploiting staff, have joined Thirsty Liquor Group Ltd.
The documents, dated May 7, say they will operate as 'satellite stores'.
It's unclear exactly what that means — Thirsty Liquor's managing director Tina Govan hasn’t responded to requests for comment and Singh refused to talk — but it's believed Nekita Enterprises' stores will remain under the red and black Canterbury Liquor banner while receiving the benefits of being part of one of the country’s largest liquor retail franchises.
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According to Thirsty Liquor’s website, it has more than 170 stores with an annual turnover of more than $200 million.
Franchisees receive the benefits of “group buying power” which allows for the “sharpest pricing from suppliers”, the website says.
In February, Super Liquor Holdings terminated its franchise agreements with Nekita Enterprises — one of its largest franchisees — after a Labour Inspectorate investigation found the company paid several staff less than the minimum wage.
The investigation was hampered by poor record-keeping, which made it difficult to establish the extent of any wrongdoing.
The Employment Relations Authority is yet to determine what, if any, penalties should be imposed.
Shortly before the findings of the Labour Inspectorate’s investigation were made public in February, Singh approached Liquorland, which has more than 100 stores nationwide, wanting to join the retailer.
His proposal, which would have made Liquorland the dominant player in the Christchurch market, was rejected.
Liquorland chief executive Brendon Lawry last week said that 'based on Liquorland's stringent franchisee criteria he [Singh] does not meet our expectations'.
'Everything we do is underpinned by a core value of responsibility. It's just not responsible to operate like he does,” Lawry said.
He was disappointed that Singh continued to operate and 'maintain supply contracts'.
Nekita Enterprises' bottle stores were rebranded as Canterbury Liquor after the split from Super Liquor.
Singh recently set up three new companies — Canterbury Liquor Ltd, Canterbury Liquor Baron Ltd and Liquor Tycoon Ltd.
In March, Nekita Enterprises applied to renew the off-licence for its bottle store in Norwich Quay, Lyttelton.
There have been two public objections to the application, which is expected to receive significant scrutiny from the District Licencing Committee.
The committee’s decision, which is keenly awaited by those in the liquor industry, could set a precedent for the renewal of off-licences held by Nekita Enterprises.
Labour Inspectorate regional manager Callum McMillan previously said liquor licensing decisions should factor in the applicant's treatment of staff.
'When district licensing committees grant liquor licences to non-compliant employers, then they have a hand in enabling and normalising the exploitation of workers,' McMillan said.
Stuff previously revealed Singh, who has a multimillion dollar property portfolio, planned a palatial mansion while Nekita Enterprises was being investigated by the Labour Inspectorate.
Nekita Enterprises has received about $300,000 from the Government’s wage subsidy scheme, for 47 employees. The subsidy is available to businesses that can show a minimum 30 per cent drop in actual or predicted revenue that is attributable to Covid-19.