Collapsed hospitality companies owe $3m, owners fire-sold mansion

Saturday, 25 May 2024

Couple Francesca Voza and James Sumner, who are currently overseas, have agreed to sell Eliza’s Manor for nearly $1.5 million less than they bought it for. Four of their companies are currently in liquidation owing at least $3m.

Just two days after saying no creditors were owed money, it has emerged Francesca Voza’s companies owe more than $3 million, nearly half of which is unpaid tax.

Voza and her husband, James Sumner, who own Christchurch’s Eliza Manor, have also agreed to sell the mansion for nearly $1.5m less than they bought it for three years ago.

The $2.75m agreed sale price is half of what the hospitality operators were seeking for the property just three months ago. It has a current rateable value of more than $4m.

The couple recently sold their businesses Miro and Mr Wolf before placing four of their companies into liquidation. The company that owns the manor Eliza’s Holdings Ltd is one of those in liquidation, which the couple are majority shareholders of.

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“We don’t owe any creditors or staff wages so I’m not sure what you are trying to put together into a story”, Voza, who is currently overseas, told The Press in an email on Wednesday.

Just two days after saying no creditors were owed money, it has emerged that Francesca Voza’s companies owe over $3 million, nearly half of which is unpaid tax.

But according to the initial liquidator’s reports, released on Friday, the couple’s companies owe more than $3m to creditors, nearly half of which is unpaid GST and PAYE owed to Inland Revenue.

There is also $12,000 owed in unpaid staff wages and holiday pay, the reports say.

The staff and majority of trade creditors of the companies previously associated with Miro and Mr Wolf (before the businesses were sold) had been paid from the proceeds of the sales.

But those two companies had $980,000 owing in unpaid GST and PAYE.

The couple ran a five-star boutique hotel and restaurant in the Bealey Ave manor and made it their home. The company behind the hotel and restaurant - Francesca’s Christchurch Ltd - owes Inland Revenue $400,000 and $130,000 to unsecured creditors.

Voza formerly owned Francesca’s Italian Kitchen in Christchurch.

Funds for unsecured creditors that hadn’t already been paid were unlikely to be realised.

Inland Revenue initially took action to liquidate Voza’s companies. She then met with a professional advisor, and placed the companies into voluntary liquidation after that meeting.

The sale of Eliza’s Manor would not be enough to meet the companies’ financial requirements, the liquidator said.

Miro has been sold and is under new ownership. (File photo).

Eliza’s Holdings Ltd owed $4.2m to secured creditors. The $2.75m sale of the building would go to those creditors, leaving a shortfall of $1.5m.

Property development company Brooksfield has agreed to purchase the mansion. It plans to repurpose it into an office space for its staff.

The restaurant and hotel, which is still currently operating, would close after the sale settled next month.

Mr Wolf on Colombo St is under new ownership and is now called The Guardian Bar and Grill.

It’s understood that Eliza’s Manor staff had been served termination notices.

“I have bought and sold many restaurants … I have worked tirelessly in hospitality for 13 years in New Zealand and opened some very successful venues,” Voza said earlier this week.

“All my restaurants have been sold to reputable business owners and are still very successful … all staff were kept in employment.”

Voza was behind the popular Francesca’s Italian Kitchen. She and the chef released a cookbook of the same name. She sold the Christchurch restaurant and its Wanaka arm some years ago.

The companies in liquidation are Eliza’s Holdings Ltd, The Octopus Furnace Ltd (which traded as Miro) Mr Wolf Ltd and Francesca’s Christchurch Ltd.

Voza told The Press on Friday she did not “owe any staff wages or creditors”.

“The $12k is majority holiday pay for James and I,” Voza said in an email response.

“All creditors have been paid and those that haven’t yet will be when Eliza’s stops trading.”

Voza did not respond to questions about money her companies owed IRD in unpaid tax.

Several of her former staff said they were shocked and saddened by the news of the liquidations.

“I feel for the Eliza’s Manor staff who’ve lost their jobs”, one said.

Creditors have until June 19 to make any claims.

Eliza’s Manor was built in 1861 and extensively restored after the earthquakes.

The Zhang family, who purchased it in 2016 and have a mortgage on the property, put huge amounts of work into its restoration.

The family worked in partnership with Fred Rahme and Jack Lin of Lime Global on the restorations.