Timaru employment agency placed in liquidation

Monday, 18 March 2024

Leon Hobbs outside the Staff Services office on Bank St, Timaru, in April 2023.

In another indication of tougher economic times, Timaru employment agency Staff Services Ltd has been placed into liquidation.

Earlier this month Waipopo Limited Partnership, the owner of South Canterbury’s Waipopo Orchards, went into receivership owing millions of dollars to a bank, and Timaru based building company New Zealand Carpentry Limited was placed into liquidation.

Staff Services Limited, which provided labour hire services, was established in October 2015 and was owned by sole shareholder and director Leon Hobbs.

Hobbs declined to comment when contacted.

Liquidator Brenton Hunt, who was appointed when the company was placed into liquidation on March 7, released his first liquidator’s report on March 13.

It shows the company owes $350,000 to Inland Revenue, and $100,000 to an unsecured creditor.

The total estimated shortfall to all creditors was yet to be announced.

Assets secured comprised office equipment and a motor vehicle which were expected to realise $2000 and $10,000 respectively when sold.

Hunt said Hobbs had sought professional advice and decided to place the company into liquidation.

“Demand for labour has been slowly reducing and competition has been becoming more and more difficult,” Hunt said in his report.

“With Covid-19 pressures the company had fallen behind with Inland Revenue assessments.

“With lower margin being made it was increasingly difficult to try and catch up on past assessments.”

According to the report, the company ceased trading in January 2024, and was associated to Pinnacle Recruitment Limited which was incorporated in January 2024 and was owned by Hobbs.