South Canterbury orchard owners placed in receivership

Saturday, 2 March 2024

Waipopo Limited Partnership, the owner of South Canterbury’s Waipopo Orchards, has been placed into receivership this week owing millions of dollars to a bank.

Receiver Malcolm Hollis, of PWC, said he had been appointed this week and had met with director James Anderson and staff on Thursday.

Hollis said the company had been struggling financially and was in arrears to a bank which he did not name.

“I can’t discuss the financials, but Waipopo was insolvent.”

He said “some millions of dollars” were owed to the bank.

“There were challenges in last season’s harvest and a partial crop failure exacerbated the problem; they were struggling to get through on limited resources.

“I understand the core issue was the variety they grow, the crisp American [honeycrisp] variety; there is a surfeit and market prices were very low.

“We’ve implemented a process to manage the business.”

Besides honeycrisp apples for the North American market, the 80 hectare orchards grew other export apples: royal gala, red delicious and braeburn, as well as pears.

Hollis said a statutory report was being prepared, and that would not be available for a couple of months.

“Ultimately we’re focused on the harvest and what happens in the future, whether it’s still a going concern post-harvest.“

The most likely scenario was the property would be sold and the bank repaid, he said.

The Timaru Herald attempted to contact Waipopo Limited Partnership director James Anderson without success.

“He has been very focused on helping us, and everyone has been very positive,” Hollis said.

He confirmed harvesting of this season’s apples and pears would start next week.

“The employees got their payroll on Wednesday, and we’re making sure plans for harvest are in place to get orders picked.

“There are 10 to 12 permanent staff and they will continue, as well as the season’s picking staff. There are no real changes in that.”

The emphasis was now on finding markets for this season’s crop.

“We’re confident they [the apples] will be exported.”

In 2011, Waipopo Orchards first exported honeycrisp apples, the most popular apple in the United States and often called “the champagne of apples,” with a consignment of 50 tonnes.

Waipopo Limited Partnership, a North Island investment group, bought Waipopo Orchards when brothers Danny and Peter Bennett retired in 2016.

The orchard was listed for sale by International Tender.

When advertised for sale at that time, the property had almost 75ha, multiple orchard blocks, buildings for production and accommodation, and equipment.

In November 2017, Waipopo Limited Partnership sought $5,850,000 from investors with a minimum investment of $650,000 providing a 10% share in the partnership.

Claims and enquiries could be made to nz_restructuring@pwc.com.