Temuka cafe in liquidation
Thursday, 22 February 2024
Monarch Kitchen Cafe Ltd in Temuka has gone into liquidation.
The pandemic, difficulty finding staff and the rising cost of food have been detrimental to the business, one of its directors said.
The cafe began trading in April 2021.
One of the directors of a South Canterbury cafe, now in liquidation, said the pandemic, difficulty finding staff and the rising cost of food have been detrimental to the business.
Monarch Kitchen Cafe Ltd, owned by Jessica Marie Phimister and Daniel Sargent, was placed into liquidation on February 13, with the first liquidator’s report filed to the companies office on February 19.
On Wednesday, Sargent told The Timaru Herald several factors had forced the business into liquidation.
“It was mainly Covid, and staffing issues, and the rising cost in food prices,’’ he said.
“I can see why so many people are struggling at the moment.’’
In his first report, liquidator Brenton Hunt, of Insolvency Matters estimated, subject to further verification, there would be no funds available to unsecured creditors.
“However, this will depend on the progress of the liquidation,’’ his report said.
The report put the company’s estimated shortfall to all creditors at $59,000.
The Inland Revenue Department was the sole preferential creditor , and was owed an estimated $15,000 for PAYE and GST.
Unsecured creditors, of which nine are listed, are estimated to be owed $50,000. They are ACC, Contact, Eftpos Now, Employsure, Gallagher, Inland Revenue, Noone Plus, One NZ and Paymark.
Secured creditors, owed $5000, are Bidfood, Finance Now, Kaans Catering Supplies, Silver Chef Rentals Ltd, and Trents Wholesale Ltd.
While it was not “practicable’’ to provide an estimated date for the completion of the liquidation at this stage, it will most probably be within 12 months, the report said.
The cafe, on Temuka’s main street, offered dine in and takeaway options, and began trading in April 2021.
On February 1, the business posted a statement on social media saying Monarch Kitchen opened as “a space for family and friends to relax and enjoy a quiet coffee and get together, which we achieved’’.
“We have come to the decision that our boys and family come first and with other commitments going on … we will be closing the doors for the final time Saturday 3rd February.’’
The post went on to say there would be “some new exciting things … happening over the next weeks at the Jolly Potter Restaurant’’.
Sargent and Phimister are the joint owners of The Jolly Potter which is located along the street from the former Monarch Kitchen premises.