Invercargill bakery owner apologises

Friday, 1 March 2019

An Invercargill bakery owner whose business has gone into liquidation says it has been a year from hell.

McMurdo's Colonial Bakery on Gala St, which traded as Colonial Bakery, was placed into liquidation and stopped trading on February 12.

One of its two directors, Logan McMurdo, said they were basically forced into liquidation because of money owing. 

It had been a year from hell with a relationship break up, terminally ill 3-year-old daughter and stresses in the business, he said.

**READ MORE:

* Invercargill business owner says council works have cost her business thousands

* Food Truck Friday a hit in city

* Invercargill bakery makes new beer bread**

The first liquidation report, prepared by liquidator Lynda Smart of Rodgers Reidy Limited, says the Colonial Bakery director had advised that the reason for insolvency was because a general business downturn and unexpected maintenance costs.

The liquidator was investigating the sale of the business as a going concern, but if that didn't happen the assets owned by the company would be sold by auction or tender.

McMurdo said he felt bad about the business going into liquidation because people were left out of pocket.

'I really hope someone does buy it because I don't want to leave other people in the crap.'

He had worked at the bakery for 13 years and owned it for two.

'We just took on too much, far too much for what we could handle,' McMurdo said.

'I want to apologise to everyone affected, we never wanted it to happen.'

The liquidator's report says the creditors include former Colonial Bakery owners Brian and Allison Booth.

It is understood the couple, who owned the bakery from 2004 to 2016, are owed more than $40,000, and perhaps much more if the bakery building cannot be leased to someone else. 

Booth said they were the guarantors on the current lease which has 16 months to run.  

The Booth couple are unsecured creditors and it is understood they do not hold out much hope of getting their money back.

The outstanding secured creditors include ANZ which is owed $28,355, while employees of the bakery are owed $7784 for unpaid wages and holiday pay, Smart's liquidator's report says.

Smart said several creditors had yet to reveal their debt and had until March 26 to do so and lodge their claims.

'We don't know what's owed to all creditors at the moment.'