Timaru council asked director to resign from Venture Timaru

Thursday, 16 May 2024

A former director of the Timaru District Council’s economic development and tourism promotion agency was asked to resign after four of his companies were put into liquidation last year.

Timaru District mayor Nigel Bowen has confirmed former Venture Timaru director Karl Te Raki was asked to resign after the council “became aware of the challenges with his company”.

Te Raki’s company, Kitchens Direct (NZ) Limited, which traded as Kitchens Direct in Timaru for more than 50 years, and three other linked companies were put into liquidation in October 2023.

The second liquidators report, released last week, estimates the company owes creditors more than $350,000 and said a formal demand had been issued to Te Raki over a shareholders account which had been overdrawn by more than $685,000.

Te Raki, who was appointed as a director of Venture Timaru on April 1, 2021, was removed from the role on November 1, 2023.

“Our actions in this regard should give Timaru District residents confidence in the robustness of (our) board appointment process, and that as a council we won’t delay in acting if we have any concerns over those leading our council controlled organisations,” Bowen said.

Bowen said Logan Hanifin, who had previously served as an associate director on the Venture Timaru board, had been appointed in the interim until the next annual meeting.

He said Hanifin has a “wealth of experience in the primary and value added product sectors that form the backbone of our economy”.

Asked why the changes had not been announced to the community, Bowen said: “We will make a formal announcement of board appointments once they are confirmed at the VT Annual General Meeting”.

On Wednesday, The Timaru Herald asked Te Raki a number of questions including whether he still intended to pay all creditors back, and if he wanted to comment on his resignation from Venture Timaru.

He did not respond directly to any of the questions put to him, but did provide a lengthy response in which he said he was saddened by what he described as an ongoing attack on his personal integrity and mana within the community.

“Personal attacks not only affect the person you are naming and shaming, but also impacts their direct family and the wider whānau with personal defamation,” he said.

Te Raki said to date he had no contact or “support from any community business support organisations’’ and raised concerns others may choose to hold on to a business for too long in fear of persecution.

“I am a private person, that has chosen to liquidate a business and to bring this business to its close.

“I have placed the business in the hands of a liquidator to manage the process and allow myself to move on with my personal life, but knowing it is being managed professionally.”

Te Raki said he believed there could be more business impacted by the economic downturn, and extended an offer to any business owners needing a confidential chat, saying “I am here’’.

At the time his companies went into liquidation, Te Raki said he intended to see creditors fully paid.

“The liquidator is following his process to wind up the businesses. That can take time, but as he completes that process, I will be making sure that creditors are fully paid and that any outstanding customer issues are resolved.”

While he did not respond to questions about that on Wednesday, that intention is clearly displayed on a website advertising his professional services as an independent director.

In a section which outlines his experience as a business owner, Te Raki addresses the voluntarily liquidation of his companies.

“This proactive approach, guided by the understanding of when to cease operations to prevent accumulating insurmountable debt, allowed for timely adjustments and facilitated the pursuit of new opportunities.”

“To succeed in business, it’s crucial to possess skills such as financial literacy, market analysis, adaptability, and strategic planning. Recognising when to exit a business is also vital, requiring a combination of financial acumen, market awareness, and emotional intelligence to make informed decisions about when to move on.

“While the journey may have extended beyond initial expectations, I’m looking forward to finalising the liquidation process in the coming weeks to ensure the welfare of remaining creditors and keeping the promise that I personally made to them.”

Te Raki remains a director of Te Runanga o Arowhenua Limited, and was appointed to that board in February 2023.

Te Rūnanga o Arowhenua chairperson Fiona Pimm said Arowhenua was aware of the situation with Te Raki’s businesses.

“My understanding is that the liquidation process is in progress and the final outcome of liquidation is unknown,’’ Pimm said.

“Arowhenua will not take any action regarding Karl’s representation roles with us at this stage.’’

Te Aitarakihi Incorporated Society chairperson, Damon Odey, has confirmed Te Raki is still the chairperson of its building and development committee.

“He is more than capable of continuing in this role, it is a sub committee reporting to the Incorporated Society and it has no financial delegations,’’ Odey said.

“Karl has contributed his experience, commitment and time to our organisation and during these difficult times for Karl, we are here to offer him support and not draw any conclusions around his decision to appoint a liquidator in his private company.

“We will in time no doubt be in a position to make informed decisions once that process has concluded.’’